Suppose the return on a european bond is 8 percent per year. if we expect the us dollar to depreciate with respect to the euro by 7 percent in the next year, what is the expected dollar return on this european bond?
a. 7 percent.
b. 15 percent.
c. 8 percent.
d.1 percent.

Marcus nurseries inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. the company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. if the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock?