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Choosing the Right Savings and Investment Options: Tutorial
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Compare the capital gains from investing in the three stocks with the interest income on a one-year CD. Which would
have been a more profitable investment-the stocks or a one-year CD? Explain your reasoning.
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Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625