You have 253.05 today. A friend wants to borrow that money from you and pay you back 310 at the end of 3 years. What rate of return (per annum) will you earn from the loan?
A) 7.0
B) 7.2
C) 6.8
D) 7.4
E) 7.6
Question 2
LaMike owns 1,000 shares of DAS, Inc.'s common stock. The stock has a par value of 1 per share
and is currently selling for 80 per share. DAS declares a 20 stock dividend. In a perfect capital
market, after the dividend Sam will have
A) 1,200 shares selling for 66.67 each. B) 1,200 shares selling for 96.00 each.
C) 1,020 shares selling for 80.80 each. D) 1,020 shares selling for 64.00 each.