1. You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.45 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? Answer to two decimals.
2. The Golden Slipper has sales of $487,900, EBIT of $128,650, taxes of 35 percent, interest paid of $12,400, and a dividend payout ratio of 40 percent. What is the common-size ratio of the addition to retained earnings?
3. School House Antiques has current assets of $340 and current liabilities of $190 at the end of the year. At the beginning of the year, the current assets were $415 and the current liabilities were $210. What is the change in net working capital?