See attached file for problems.
Refer to Stone Cold. For 2004, what was the return on assets?
4. Referring to Stone Cold data below. For 2004, what was the debt-to-equity ratio?
Refer to Stone Cold. For 2004, what was the average collection period for the firm in 2004?
Refer to Stone Cold data below. For 2004, what was the total asset turnover for 2004?
7. You are planning your retirement and you come to the conclusion that you need to have saved $1,250,000 in 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal? (Points: 2)
8. You set up a college fund in which you pay $2,000 each year at the beginning of the year. How much money will you have accumulated in the fund after 18 years, if your fund earns 7% compounded annually? (Points: 2)
11. Bavarian Sausage is expected to pay a $1.57 dividend next year and investors expect that dividend to grow by 5% each year forever. If the required return on the stock investment is 14%, what should be the price of the stock today. (Points: 2)
12. Miller Juice traditionally pays out 35% of its earnings as dividends. Last year Miller's earnings available for common stockholders were $256 million and the book value of its equity was $678 million. What is Miller's growth rate? (Points: 2)
21. You bought a share of Bavarian Sausage stock for $46.50 at the beginning of the year. During the year the stock paid a $2.75 dividend and at the end of the year it trades at $52.75. Referring to Bavarian Sausage. What is the total return of your stock investment? (Points: 2)
22. The risk-free rate is 5% and the expected return on the market portfolio is 13%. A stock has a beta of 1.5, what is its expected return? (Points: 2)
The solution explains various multiple choice questions relating to average collection period, asset turnover, dividends, annuities, FV and stock beta