1. Bill's Boards has 6.8 million shares of common stock outstanding, 5.8 million shares of preferred stock outstanding, and 38.00 thousand bonds. If the common shares are selling for $29.90 per share, the preferred share are selling for $18.80 per share, and the bonds are selling for 95.82 percent of par, what would be the weight used for equity in the computation of Bill's WACC?

66.67%

53.81%

33.33%

58.30%

2. The future value of an annuity due with 6 payments of $2,000 each, using 10%, is____

A lottery winner will receive $1 million at the end of each of the next ear 1 10000 years. What is the value of her winnings if she decides to get a lump sum today, given that the interest rate is 6.5% per year?____

3. Oasis Products, Inc. has current liabilities = $9.9 million, current ratio = 1.90 times, inventory turnover ratio = 12.4 times, average collection period = 24 days, and sales = $110 million. What is the value of their cash and marketable securities? (Consider a 365 days a year.)

$16,064,813

$2,706,155

$18,810,000

$8,870,968