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Erna Company is expected to pay a dividend of $2.53 one year from today and $2.68 two years from today. The company’s sales in two years are expected to be $15,750,000. The company has a PS ratio of 1.71 times, and 524,500 shares outstanding. If the required return on the company’s stock is 11 percent, what is the current stock price?

Today, you turn 21. Your birthday wish is that you will be a millionaire by your 40th birthday. In an attempt to reach this goal, you decide to save $75 a day, every day, until you turn 40. You open an investment account and deposit your first $75 today. What rate of return must you earn to achieve your goal? Note: Ignore Leap Years.

You have been investing $300 a month for the last 8 years. Today, your investment account is worth $43,262. What is your average rate of return on your investments?

You want a seat on the board of directors of Zeph, Incorporated. The company has 205,000 shares of stock outstanding and the stock sells for $78 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how much will it cost you to guarantee that you will be elected to the board?

Coulter Supply has a total debt ratio of .46. What is the equity multiplier?

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.26 percent paid semiannually and sell for $2,133.14. The bonds have a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds?

A newly issued bond has a coupon rate of 5 percent and semiannual interest payments. The bonds are currently priced at par. The effective annual rate provided by these bonds must be:

Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $250 a month for the next 20 years. What is the rate of return on this investment?

What is the future value of $1,575 deposited at the end of each year for 25 years? Assume an interest rate of 6.3 percent compounded annually.

A firm has total assets with a current book value of $71,600, a current market value of $82,300, and a current replacement cost of $90,400. What is the value of Tobin’s Q?