Last year Gray Corp. had net sales of $325,000 and a net inc…

Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s total-debt-to-total-capital ratio was 0%. The firm uses only debt and common equity as financing. Based on the DuPont equation, what was the ROE?

Bryant Investments is putting out a new product. The product…

Bryant Investments is putting out a new product. The product will pay out $32,000 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.)