Problem 1: The prices for the Guns and Hoses Corporation for the first quarter of 2005 are given below. Find the holding period return for February.
Month End Price
January $135.28
February 119.40
March 141.57
Problem 2) If a corporation has operating income of $10,500,000 and it receives $245,000 in interest income and $312,000 in dividend income, what is the firm's taxable income?
A) $11,057,000
B) $9,838,600
C)$10,812,000
D) $10,838,600
Problem 3) If you want to have $2,500 in 54 months, how much money must you put in a savings account today? Assume that the savings account pays 3.8% and it is compounded quarterly (round to nearest $10).
A)$330
B) $1,500
C) $2,110
D) $2,080
Problem 4) A corporation has annual sales of $10 million, total assets of $5 million, a debt ratio of 40%, depreciation expense of $200,000, and a tax rate of 30%. The corporation's total stockholders' equity is equal to:
A) $3,000,000
B) $3,560,000
C) $12,000,000
D) $2,100,000