. Llewelyn Enterprises is a mid-cap manufacturing company that generated an after-tax return on invested capital of 20% in the most recent twelve months and reported free cash flows to the firm (FCFF) of $60 million during the period. If the company had $900 million in equity, $600 million in debt and $300 million in cash at the start of the period and expects to maintain its current return on capital and reinvestment rate next year, estimate its expected growth rate in operating income next year.

An investor purchases 500 shares of nevada industries common stock for $22.00 per share today. at t = 1 year, this investor receives a $0.42 per share dividend (which is not reinvested) on the 500 shares and purchases an additional 500 shares for $24.75 per share. at t = 2 years, he receives another $0.42 (not reinvested) per share dividend on 1,000 shares and purchases 600 more shares for $31.25 per share. at t = 3 years, he sells 1,000 of the shares for $35.50 per share and the remaining 600 shares at $36.00 per share, but receives no dividends. assuming no commissions or taxes, the money-weighted rate of return received on this investment is closest to: