1. You purchased stock in a firm for $125. Eight years later you sold the stock for $175. What was the annual compound rate of return on the stock?
2.5%
4.3%
8.7%
8.9%
2. Du Pont Identity: A firm has a profit margin of 10%, total asset turnover of 2, and a Debt-to-Equity ratio of 40%. What is the firm's Return on Equity?
5%
14%
28%
97%