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If you receive $231 at the end of each year for the first two years and $532 at the end of each …. – RoyalCustomEssays

If you receive $231 at the end of each year for the first two years and $532 at the end of each ….

SMC Business Law Sec 1059 Week 4 Chp. 8 Quiz (2015)
September 26, 2018
SMC Business Law Sec 1059 Week 4 Chp. 9 Quiz (2015)
September 26, 2018

1) If you receive $231 at the end of each year for the first two years and $532 at the end of each year for the next two years.Assume interest rate is 9%. What is the value at the end of the 4th year? That is. solve for FV at the end of the 4th year2) Consider a taxable bond with a yield of 12.8% and a tax-exempt municipal bond with a yield of 6.3%. At what tax rate would you be indifferent between the two bonds?3) ABC is reviewing a project that will cost $2,299.The project will produce cash flows $531 at the end of each year for the first two years and $916 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 14%.4) ABC Company has a debt ratio of 0.51. What is the debt-equity (D/E) ratio?5) Debbie wants to have $38,585 in her bank account 5 years from now. The account will pay 0.8% interest per month. How much money does she need to put in her bank account at the end of each month to achieve this goal?6)ABC Company had beginning retained earnings of $1,812. During the year, the company reported sales of $18,645, costs of $5,298, depreciation of $1,500, dividends of $1,167, and interest paid of $2,067. The tax rate is 16 percent. What is the retained earnings balance at the end of the year?7) ABC Company has total assets of $808,595. There are 53,116 shares outstanding with a market value of $34 per share. If the net profit margin is 7.3% and the total asset turnover is 1.5, what is the price/earnings (P/E) ratio?8)ABC’s current assets comprise of cash, accounts receivables, and inventory. ABC has $10,342 in cash, $8,947 in accounts receivables, and $5,725 in inventory. If the current ratio is 1.7 times, compute the quick ratio.9)You are given the following data for ABC Inc.:Net income = $600Net operating profit after taxes (NOPAT) = $852Total assets = $2,500Stockholders’ equity = $1,800Total debt = $700Total operating capital = $5,614Barnes’ weighted average cost of capital is 5.4%.What is the economic value added (EVA)?Enter your answer rounded off to two decimal points10)ABC Company has net working capital of $1,769, current assets of $9,220, long-term debt of $1,995, and equity of $3,178. What is the amount of net fixed assets?11)The present value of a 13-year annuity is $172,510. If the interest rate is 12% and payments are made at the end of each period, what is the amount of each payment?13)ABC Company lists total assets of $4,672, current liabilities of $235 , long-term debt of $399 , and 320 shares of common stock. If the market price per share is $74, what is the market-to-book ratio?14)ABC Company offers a perpetuity which pays annual payments of $8,888. This contract sells for $252,557 today. What is the interest rate?15) ABC, Inc. has a total asset turnover of 2 and a net profit margin of 8.8%. The firm has a return on equity of 28.8%. Calculate Marshall’s debt ratio.16)Suppose an investment offers to double your money in 10 years. What annual rate of return are you being offered if interest is compounded semi-annually?17)Suppose you invest $13,014. If the interest rate is 12% compounded quarterly for the first 10 years and 12% compounded monthly for the next 5 years, what is the future value after 15 years? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.18)What is the effective rate of 16.86% compounded quarterly?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.20)Suppose you take a mortgage for $132,358 for 18 years with annual payments. If the annual interest rate is 6.7%, calculate the total interest amount paid over the life of the loan. That is, calculate the total interest paid in 18 years.Hint: Use the amortization table.21)If you receive $2,752 at the end of each year for the first three years and $1,023 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 8%.22)What is the future value of $30,553 invested for 17 years at 4% compounded semi-annually?23)How many years will it take to triple your money at 13% compounded monthly?Enter your answer rounded off to TWO decimal points. Do not enter “years” in the answer box.24)ABC, Inc. has total assets of $138,999, current assets of $34,548, current ratio of 3.5, and equity multiplier of 3.7. Compute long term debt.25)You are given the following information about ABC Company:Interest expenses = $16,829Times Interest Earned Ratio = 4 timesTax Rate = 20.9%What is the net income?26)What is the net present value of the following cash flows? Assume an interest rate of 7%YearCF0-$13,4551$7,5622$6,8613$7,633

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