In April 2016 a pound of apples cost $1.51, while oranges cost $1.15. Three years earlier the price of apples was only $1.30 a pound and that of oranges was $1.01 a pound.

a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Consider a firm as follows: Assume that the firm has no debt. The cashflows are received at the end of each year and are perpetual. Cost of equity capital for an unlevered firm, r0, is 20%. The first cash-flow will be received one year from today. All calculations for valuation are done today. Firm value is defined as collective value of debt and equity.

Sales = $ 500,000

Cash Costs = 360,000

Operating Income = 140,000

Tax @ 34% -47,600

Unlevered cash flow (UCF) $ 92,400

Find the firm value, using

a) APV method $__________.

b) FTE method $__________.

c) WACC method $__________.

Compute the future value of a $160 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. r = 8%; t = 10 years

b. r = 8%; t = 20 years

c. r = 4%; t = 10 years

d. r = 4%; t = 20 years

Calculate the contribution to total performance from currency, country, and stock selection for the manager in the following table. All exchange rates are expressed as units of foreign currency that can be purchased with one U.S. dollar. (Input all values as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)

When using Microsoft Visio or Access, what is the importance of data validation, and how can user data entry errors be reduced or eliminated?

REH Corporation's most recent dividend was $2.11 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine the impact on share price for each of the following proposed actions.

a. If the firm does nothing that will leave the key financial variables unchanged, the value of the firm will be $__________

b. If the firm invests in a new machine that will increase the dividend growth rate to 6% and lower the required return to 11%, the value of the firm will be $_______

c. If the firm eliminate an unprofitable product line that will increase the dividend growth rate to 6% and raise the required return to 18%, the value of the firm will be $_________

d. If the firm merges with another firm that will reduce the growth rate to 3% and raise the required return to 19%, the value of the firm will be $____________

e. If the firm acquires a subsidiary operation from another manufacturer that will increase the dividend growth rate to 9% and increase the required return to 18%, the value of the firm will be $_______.

The Computer Games Division of Entertainment, Inc. is considering two investment projects, each of which has an up-front expenditure of $30,000. You estimate that the cost of capital is 9 percent and that the investments will produce the following after-tax cash inflows:

Prepare answers to the following questions. Please show your calculations.

3. If the two projects are independent and the cost of capital is 9 percent, which project or projects should

Entertainment, Inc. undertake?

4. If the two projects are mutually exclusive and the cost of capital is 9 percent, which project should

Entertainment, Inc. undertake? (Hint: With mutually exclusive projects

You realize that the NPV of a project under consideration is $0. How would you proceed with the project? Discuss - in a maximum of half a page length - the principles that will guide your decision-making for this project.

What is the statistical tool that I should be using to determine the impact of working capital management on sustainable growth.

Given the following sales adjustment grid, what adjustment would be made for size? ( Please show all your work)

Down Under Boomerang, Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,050,000 in annual sales, with costs of $950,000. The tax rate is 35% and the required return is 12 percent. Calculate the projects NPV and IRR.

Suppose that Down Under Boomerang is projected to grow at a rate of 4% after year 3. What is the value of the firm?

Please describe the Fed's current monetary policy and what step they took at the most recent Federal Open Market Committee meeting?

9.A trader creates a bear spread by selling a six-month put option with a $50 strike price for $4.50 and buying a six-month put option with a $60 strike price for $9.50. What is the initial investment? What is the profit on the trade at maturity when the then stock price is (a) $46, (b) $56, and (c) $66?

An IRS code criteria for a REIT to qualify as a tax-free entity is:

Question 9 options:

Question 10 (2 points)

Land loans are considered to be:

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Question 11 (2 points)

The investor of a property may give a portion of the increase in value of the property in exchange for:

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Question 12 (2 points)

A rolling option gives the developer the right to roll the option from one property which he has decided not to purchase to another property.

Question 12 options: