1. Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 35%. Based on the DuPont equation, what was Vaughn's ROE?

a. 12.55%

b. 11.53%

c. 13.06%

d. 11.02%

e. 12.04%

2. Whim with income of $57,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost him to buy such an annuity today?

a. $689,916.27

b. $689,923.77

c. $689,931.27

d. $689,938.77

e. $689,908.77