A year ago, an investor bought 1,000 shares of a mutual fund at the net asset value of $25 per share. The fund distributed dividends of $2.5 and capital gains of $2. Today, the NAV is $28. a. What’s the holding period return? b. Assuming all dividends and capital gain distributions are reinvested into additional shares of the fund at an average price of $26 per share. What’s holding period return?

A company is planning a four-year project, with an initial cost of $1.67 million. This investment cost is amortized to zero over four years on a straight-line basis. However, the asset could be disposed of for $435,000 in four years. The project requires $198,000 in working capital initially and is fully recoverable after the project is completed. The project generates $1,850,000 in sales and $1,038,000 in costs each year. If the tax rate is 21% and the required return rate is 16.4%, what is NPV?

A magazine published data on the best small firms in a certain year. These were firms that had been publicly traded for at least a year, have a stock price of at least $5 per share, and have reported annual revenue between $5 million and $1 billion. The table below shows the ages of the corporate CEOs for a random sample of these firms. 49 57 51 60 57 59 74 63 53 50 59 60 60 57 46 55 63 57 47 55 57 43 61 62 49 67 67 55 55 49 Use this sample data to construct a 90% confidence interval for the mean age of CEO's for these top small firms. Use the Student's t-distribution. (Round your answers to two decimal places.) ,

Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require a 8% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

1. A five-year bond with a yield of 11% (compounded annually) pays an 8%

   coupon at the end of each year.

   1. (a) What is the bond’s price?

   2. (b) What is the bond’s duration?

   3. (c) Use the duration to calculate the effect on the bond’s price of a 0.2% de-

      crease in its yield.

   4. (d) Recalculate the bond’s price on the basis of a 10.8% per annum yield and

      verify that the result is in agreement with your answer to (c).

What is the loan balance (in dollars) after the third payment, of a 5 year loan of $100,000 with an APR of 10% and annual payments?

Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $170,000. The machine’s estimated useful life at the time of the purchase was five years, and its residual value was $10,000. The company reports on a calendar year basis. Required:

a-1. Prepare a complete depreciation schedule, beginning with the current year, using the straight-line method. (Assume that the half-year convention is used).

a-2. Prepare a complete depreciation schedule, beginning with the current year, using the 200 percent declining-balance method. (Assume that the half-year convention is used).

a-3. Prepare a complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used).

b. Which of the three methods computed in part a is most common for financial reporting purposes?

c. Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $31,500 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a.

A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The loan requires monthly payments and has a 3% fee if the loan is repaid within 10 years. What is the effective interest rate on the loan if the borrower repays the loan after 72 payments?

The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:

Required:

(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;

(d) Net increase/(decrease) in cash and cash equivalents.

Please use the following format