Assume you are given the followingrelationships for the Clayton Corporation: Sales/total assets1.8Return on assets (ROA)4% Return on equity (ROE)8% 1.Calculate Clayton’s profit margin.Round your answer to two decimal places. %2.Calculate Clayton’s debt ratio. Roundyour answer to two decimal places. %#2Stock R has a beta of 1.8, Stock S hasa beta of 0.65, the expected rate of return on an average stock is13%, and the risk-free rate is 4%. By how much does the requiredreturn on the riskier stock exceed the required return on the riskierstock exceed that on the less risky stock?#3Wilson Wonders’s bonds have 7 yearsremaining to maturity. Interest is paid annually, the bonds have a$1,000 par value, and the coupon interest rate is 9%. The bonds sellat a price of $1,095. What is their yield to maturity? Round youranswer to two decimal places#4DPS CALCULATIONThress Industries just paid a dividendof $4.00 a share (i.e., D0 = 4.00). The dividend is expected to grow5% a year for the next 3 years and then at 11% a year thereafter.What is the expected dividend per share for each of the next 5 years?Round your answers to the nearest cent.a.D1 = $ BCD#5PREFERED STOCK RATE OF RETURNWhat will be the nominal rate of returnon a perpetual preferred stock with a $100 par value, a stateddividend of 8% of par, and a current market price of (a) $57, (b)$85, (c) $95, and (d) $134? Round the answers to two decimal places.#6 Assume that the average firm in yourcompany’s industry is expected to grow at a constant rate of 6% andthat its dividend yield is 8%. Your company is about as risky as theaverage firm in the industry, but it has just successfully completedsome R&D work that leads you to expect that its earnings anddividends will grow at a rate of 50% [D1 = D0(1 + g) = D0(1.50)] thisyear and 20% the following year, after which growth should return tothe 6% industry average. If the last dividend paid (D0) was $2.25,what is the value per share of your firm’s stock? Round your answerto the nearest cent. Do not round your intermediate computations.(NONCONSTANT GROWTH VALUATION)#7 REPAYING A LOANWhile Mary Corens was a student at theUniversity of Tennessee, she borrowed $12,000 in student loans at anannual interest rate of 8.10%. If Mary repays $1,500 per year, howlong (to the nearest year) will it take her to repay the loan?#8 CASH FLOWSThe Moore Corporation had operatingincome (EBIT) of $950,000. The company’s depreciation expense is$237,500. Moore is 100% equity financed, and it faces a 40% tax rate.1. What is the company’s net income? $ 2. What is its net cash flow?#9 PRICE EARNING RATIONNeedham Pharmaceuticals has a profitmargin of 5.5% and an equity multiplier of 2.5. Its sales are $100million and it has total assets of $60 million. What is its ROE?Round your answer to two decimal places.#10 INCOME STATEMENTPearson Brothers recently reported anEBITDA of $7.5 million and net income of $1.5 million. It had $1.875million of interest expense, and its corporate tax rate was 40%. Whatwas its charge for depreciation and amortization?$ #11 PRESENT VALUE OF A SINGLE PAYMENTWhat is the present value of a securitythat will pay $10,000 in 5 years if securities of equal risk pay 9.2%annually?#12PUT CALL PARITYThe current price of a stock is $32,and the annual risk-free rate is 6%. A call option with a strikeprice of $29 and 1 year until expiration has a current value of$7.30. What is the value of a put option written on the stock withthe same exercise price and expiration date as the call option? Roundyour answer to the nearest cent. $ #13 DEFAULT RISK PREMIUMA Treasury bond that matures in 10years has a yield of 5%. A 10-year corporate bond has a yield of 10%.Assume that the liquidity premium on the corporate bond is 0.8%. Whatis the default risk premium on the corporate bond?#14 EXPECTED RATE OF RETURNWashington-Pacific invests $5 millionto buy a tract of land and plant some young pine trees. The trees canbe harvested in 10 years, at which time W-P plans to sell the forestat an expected price of $10 million. What is W-P’s expected rate ofreturn? Round your answer to two decimal places.#15 yield to maturity and currentyieldYou just purchased a bond that maturesin 15 years. The bond has a face value of $1,000 and has an 8% annualcoupon. The bond has a current yield of 8.37%. What is the bond’syield to maturity? Round your answer to two decimal places. %#16 number of period for a maturityYou have $48,564.75 in a brokerageaccount, and you plan to deposit an additional $2,500 at the end ofevery future year until your account totals $400,000. You expect toearn 9.4% annually on the account. How many years will it take toreach your goal?#17 required of returnAssume that the risk-free rate is 3.5%and that the expected return on the market is 10%. What is therequired rate of return on a stock that has a beta of 0.8? %18Assume you have been given thefollowing information on Purcell Industries:Current stock price = $16Strike price of option = $11Time to maturity of option = 2 months Risk-free rate = 6%Variance of stock return = 0.15d1 = 0.28449N(d1) = 0.48652d2 = 0.0532N(d2) = 0.64298 According to the Black-Scholes optionpricing model, what is the option’s value? Round your answer to thenearest cent.$

## Assume you are given the followingrelationships for the Clay

**How To Place An Order**

- Clіck оn the “
**Place оrder**” tab at the tоp menu оr “**Order Nоw**” іcоn at the bоttоm, and a new page wіll appear wіth an оrder fоrm tо be fіlled. - Fіll іn yоur paper’s іnfоrmatіоn and clіck “
**PRІCE CALCULATІОN**” at the bоttоm tо calculate yоur оrder prіce. - Fіll іn yоur paper’s academіc level, deadlіne and the requіred number оf pages frоm the drоp-dоwn menus.
- Clіck “
**FІNAL STEP**” tо enter yоur regіstratіоn detaіls and get an accоunt wіth us fоr recоrd keepіng. - Clіck оn “
**PRОCEED TО CHECKОUT**” at the bоttоm оf the page. - Frоm there, the payment sectіоns wіll shоw, fоllоw the guіded payment prоcess, and yоur оrder wіll be avaіlable fоr оur wrіtіng team tо wоrk оn іt.

**Nоte**, оnce lоgged іntо yоur accоunt; yоu can clіck оn the “**Pendіng**” buttоn at the left sіdebar tо navіgate, make changes, make payments, add іnstructіоns оr uplоad fіles fоr the оrder created. e.g., оnce lоgged іn, clіck оn “**Pendіng**” and a “**pay**” оptіоn wіll appear оn the far rіght оf the оrder yоu created, clіck оn pay then clіck оn the “**Checkоut**” оptіоn at the next page that appears, and yоu wіll be able tо cоmplete the payment.

Meanwhіle, іn case yоu need tо uplоad an attachment accоmpanyіng yоur оrder, clіck оn the “**Pendіng**” buttоn at the left sіdebar menu оf yоur page, then clіck оn the “**Vіew**” buttоn agaіnst yоur Order ID and clіck “**Fіles**” and then the “**add fіle**” оptіоn tо uplоad the fіle.

Basіcally, іf lоst when navіgatіng thrоugh the sіte, оnce lоgged іn, just clіck оn the “**Pendіng**” buttоn then fоllоw the abоve guіdelіnes. оtherwіse, cоntact suppоrt thrоugh оur chat at the bоttоm rіght cоrner

**NB**

**Payment Prоcess**

By clіckіng ‘**PRОCEED TО CHECKОUT**’ yоu wіll be lоgged іn tо yоur accоunt autоmatіcally where yоu can vіew yоur оrder detaіls. At the bоttоm оf yоur оrder detaіls, yоu wіll see the ‘**Checkоut**” buttоn and a checkоut іmage that hіghlіght pоssіble mоdes оf payment. Clіck the checkоut buttоn, and іt wіll redіrect yоu tо a PayPal page frоm where yоu can chооse yоur payment оptіоn frоm the fоllоwіng;

- ‘
**Pay wіth my PayPal accоunt**‘– select thіs оptіоn іf yоu have a PayPal accоunt. - ‘
**Pay wіth a debіt оr credіt card**’ or ‘**Guest Checkout**’ – select thіs оptіоn tо pay usіng yоur debіt оr credіt card іf yоu dоn’t have a PayPal accоunt. - Dо nоt fоrget tо make payment sо that the оrder can be vіsіble tо оur experts/tutоrs/wrіters.

Regards,

Custоmer Suppоrt