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A stock had returns of 11.18 percent, −15.37 percent,21.53 percent, 26.67 percent, and 9.93 percent over the past five years. What was the geometric average return for this stock?

A stock had annual returns of 7 percent, −28 percent, 13 percent, and 23 percent for the past four years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

Wayco Industrial Supply has a pretax cost of debt of 8.3 percent, a cost of equity of 14.7 percent, and a cost of preferred stock of 8.9 percent. The firm has 165,000 shares of common stock outstanding at a market price of $33 per share. There are 15,000 shares of preferred stock outstanding at a market price of $43 per share. The bond issue has a face value of $750,000 and a market quote of 101. The company’s tax rate is 21 percent. What is the weighted average cost of capital?

Last year, you purchased 740 shares of Forever, Incorporated, stock at a price of $50.50 per share. You received $1,110 in dividends and a total of $44,304 when you sold the stock. What was the capital gains yield on this stock?

Granite Works maintains a debt-equity ratio of .58 and has a tax rate of 21 percent. The pretax cost of debt is 8.9 percent. There are 18,000 shares of stock outstanding with a beta of 1.42 and a market price of $23 per share. The current market risk premium is 7.8 percent and the current risk-free rate is 3.1 percent. This year, the firm paid an annual dividend of $1.68 per share and expects to increase that amount by 2 percent each year. Using an average expected cost of equity, what is the weighted average cost of capital?

A 5-year project requires a $20,000 investment in machinery that will be depreciated on a straight-line basis to a value of $0 over its 5-year life. The project will have net income of $6,000 per year and operating cash inflows of $7,500 per year. What is the payback period?

Last year, you purchased a stock at a price of $70.00 a share. Over the course of the year, you received $1.50 per share in dividends and inflation averaged 2 percent. Today, you sold your shares for $73.20 a share. What is your approximate real rate of return on this investment?

The terms of sale generally include all of the following except the:

You have calculated the pro forma net income for a new project to be $46,200. The incremental taxes are $22,890 and incremental depreciation is $16,950. What is the operating cash flow?

A cost-cutting project will decrease costs by $66,300 a year. The annual depreciation will be $15,900 and the tax rate is 21 percent. What is the operating cash flow for this project?