1)You have two investment opportunities. One will have an 12.0% rate of return on an...
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1)You have two investment opportunities. One will have an 12.0% rate of return on an investment of $590; the other will have a 13.0% rate of return on principal of $790. You would like to take advantage of the higher-yielding investment but have only $590 available. Required: What is the maximum rate of interest that you would pay to borrow the $200 needed to take advantage of the higher yield? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Maximum rate of interest: %
2)At the beginning of the year, the net assets of Shannon Co. were $380,600. The only transactions affecting stockholders' equity during the year were net income of $36,000 and dividends of $16,500. Required: Calculate Shannon Co.'s return on equity (ROE) for the year. (Round your answer to 1 decimal place.)
Return on equity: %
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