The stock of Trudeau Corporation went from $27 to $40 last year.

1. (The stock of Trudeau Corporation went from $27 to $40 last year. The firm also paid $1 in dividends during the same year. Thereafter, in the following year, the dividend was raised to $1.40. However, a declining market toward the end of the year caused the stock to fall to $24 per share from $40. Compute the rate of return (gain or loss) to the stockholder in the following year.

2. Given the following financial data, compute the return on assets and return on equity: net income/sales = 6%, sales/total assets = 2.5X, and debt/total assets = 25%.

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3. What is the approximate yield to maturity of an 8% coupon bond with a par value of $1,000? The bond is currently selling for $920 and has 5 years to maturity.

4. A convertible bond has a face value of $1,000 and the conversion price is $60 per share. The stock is selling at $25 per share. The bond pays $85 per year in interest and is selling in the market for $945. It matures in 7 years. Market rates are 10% annually.
(I) What is the conversion ratio?
(II) What is the conversion value?

5. If a $100,000 Treasury bond futures contract changes by 5/32, what is the dollar change?

6. A mutual fund is set up to charge a load. Its net asset value is $23.40 and its offer price is $24.70. What is the dollar value of the load (commission)?

7. A shopping center has an annual net operating income of $1,025,000 and a capitalization rate of 10%. What is its value?

8.An investment has the following range of outcomes and probabilities.

Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary). (Points : 15)