One year ago, Sandra Gordon purchased 200 shares of a Pacific fund when they were trading at
$ 58.20 and had a NAV of $60.00. Sandra sold her shares at the end of the year when they were trading at
$ 62.00 and had a NAV of $62.20. Ignoring fees, what is Gordon's rate of return if the fund paid $2.30 to its shareholders during the year?
Advantage Corp.'s capital structure was as follows:
During 2000,
Advantage paid dividends of $3 per share on its preferred stock. The preferred shares are convertible into
2 0,000 shares of common stock. The 8 percent bonds are convertible into 30,000 shares of common stock. Net income for 2000 was $850,000. Assume the income tax rate is 30 percent. The basic earnings per share for 2000 is:
Beaumont Bearings is analyzing two mutually exclusive projects with the following cash flows. Its cost of capital is 9%.
The NPV of projects X and Y are
In January 1999 a private investor decided to allocate $2,000 to a gas and electric utilities mutual fund,
$ 5,000 to a small company mutual fund, and $3,000 to a technology stock mutual fund. In 1999, the utilities fund had a return rate of 4.3%, the small company mutual fund had a return rate of 1.4%, and the technology stock mutual fund had a return rate of 8.5%. Find the average rate of return on this investment.
Price discrimination is the practice of:
