Share of stock-what will be your return

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1. Suppose you purchase a share of stock for $75, hold it for 1 year (during which you collect a dividend of $5.00 per a share), and then sell the stock for $85. What will be your return?

26.3%

20.0%

25.0%

5.0%

2. A replacement project will annually generate additional revenues of $800,000. It has fixed and variable cost total $500,000. It will increase depreciation costs by $220,000. The firma has a marginal tax rate of 34%. What is the projection for the firm's operating cash flow for this replacement.project.

A. $272,,800

B. $8,000

C. 27,200

D. $52,800

Reference no: EM131343754

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