Kathy myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. for example, three years ago she paid $20,000 for 940 shares of malti company’s common stock. she received a $752 cash dividend on the stock at the end of each year for three years. at the end of three years, she sold the stock for $23,000. kathy would like to earn a return of at least 13% on all of her investments. she is not sure whether the malti company stock provided a 13% return and would like some with the necessary computations. (ignore income taxes.)

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?