1. Ten years ago, Emma purchased an investment for $22500. The investment earned 7 percent interest each year. Using the equation method, what is the worth of the investment today?
2. The one-year forward rate of the British pound is quoted at $1.5316, and the spot rate of the British pound is quoted at $1.5426. The forward is present premium (or discount) at what annual percent rate?
3. A firm has a retention ratio of 34 percent and a sustainable growth rate of 9.50 percent. The capital intensity ratio is 1.28 and the debt-equity ratio is .69. What is the profit margin?
20.61 percent
15.10 percent
25.52 percent
19.33 percent
19.94 percent