You bought one of rocky mountain manufacturing co.’s 8 percent coupon bonds one year ago for $1,047.80. these bonds make annual payments and mature nine years from now. suppose that you decide to sell your bonds today, when the required return on the bonds is 7.5 percent. if the inflation rate was 4 percent over the past year, what would be your total real return on investment?

Last year ann arbor corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. the new cfo believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. assets, sales, and the debt ratio would not be affected. by how much would the cost reduction improve the roe? a. 11.51%b. 12.11%c. 12.75%d. 13.42%e. 14.09%