1. You bought a share of Innitech, Inc. stock for $93.00 at the beginning of the year. During the year the stock paid a $5.50 dividend and at the end of the year it trades at $89.50. What was your percentage return on this investment over the prior year?
9.00%
2.15%
8.06%
-3.76%
2. A firm currently has cash of $1,000 and other assets of $9,000. Equity is worth $10,000. The firm has 700 shares of stock outstanding and net income of $1,449. What will the new earnings per share be if the firm uses 25 percent of its cash to complete a stock repurchase? Assume there are no personal taxes and the firm is able to repurchase shares at the current market price.
2.12
1.91
2.55
1.27