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ABC is reviewing a project that will cost $1,734.The project will produce cash flows $760

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ABC is reviewing a project that will cost $1,734.The project will produce cash flows $760 at the end of each year for the first two years and $698 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 14%.;Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.;1 points;Question 2;ABC Company has total assets of $702,022. There are 51,895 shares outstanding with a market value of $34 per share. If the net profit margin is 5.6% and the total asset turnover is 1.6, what is the price/earnings (P/E) ratio?;Enter your answer rounded off to two decimal points.;1 points;Question 3;ABC Company has a debt ratio of 0.89. What is the debt-equity (D/E) ratio?;Note: Enter your answer rounded off to two decimal points. For example, if your answer is 0.123456789 then enter as 0.12 in the answer box.;1 points;Question 4;ABC Company earned $438,069 in taxable income for the year. How much tax does the company owe on this income?;Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.;1 points;Question 5;ABC Company offers a perpetuity which pays annual payments of $18,791. This contract sells for $273,771 today. What is the interest rate?;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.;1 points;Question 6;ABC, Inc. has total assets of $107,099, current assets of $24,497, current ratio of 2.9, and equity multiplier of 3.4. Compute long term debt.;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 7;The present value of a 14-year annuity is $217,758. If the interest rate is 14% and payments are made at the end of each period, what is the amount of each payment?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 8;What is the future value of $67,065 invested for 21 years at 3% compounded semi-annually?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 9;ABC, Inc. has a total asset turnover of 1.1 and a net profit margin of 7.5%. The firm has a return on equity of 28.6%. Calculate Marshall?s debt ratio.;Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. For example, if you get 0.1234567, then enter as 12.35 in the answer box.;1 points;Question 10;Suppose you take a mortgage for $104,353 for 19 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 19 years.;Hint: Use the amortization table.;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 11;If you receive $831 at the end of each year for the first two years and $126 at the end of each year for the next two years.;Assume interest rate is 15%. What is the value at the end of the 4th year? That is. solve for FV at the end of the 4th year.;Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.;1 points;Question 12;What is the effective rate of 29.37% 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.;1 points;Question 13;A project has the following cash flows. What is the internal rate of return?;Year 0 1 2 3;Cash flow -$121,000 68,150 $42,200 $39,100;13.85%;13.47%;12.71%;14.39%;14.82%;1 points;Question 14;You are given the following data for ABC Inc.;Net income = $600;Net operating profit after taxes (NOPAT) = $1,362;Total assets = $2,500;Stockholders' equity = $1,800;Total debt = $700;Total operating capital = $5,931;Barnes' weighted average cost of capital is 6.7%.;What is the economic value added (EVA)?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 15;What is the net present value of the following cash flows? Assume an interest rate of 7%;Year CF;0 -$13,455;1 $7,562;2 $6,861;3 $7,633;Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.;1 points;Question 16;ABC Company has $531,790 of operating income after all costs but before $49,581 of interest income, $58,495 of dividend income, and taxes. What is the tax expense?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 17;How many years will it take to triple your money at 15% compounded monthly?;Enter your answer rounded off to TWO decimal points. Do not enter "years" in the answer box.;1 points;Question 18;ABC Company had beginning retained earnings of $2,187. During the year, the company reported sales of $21,546, costs of $6,919, depreciation of $1,003, dividends of $1,226, and interest paid of $2,100. The tax rate is 16 percent. What is the retained earnings balance at the end of the year?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question 19;Consider a taxable bond with a yield of 12.5% and a tax-exempt municipal bond with a yield of 6.3%. At what tax rate would you be indifferent between the two bonds?;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.;1 points;Question 20;Which one of the following capital budgeting technique ignores time value of money?;Net Present Value (NPV);Payback;Internal Rate of Return (IRR);Profitability Index;Modified Internal Rate of Return (MIRR);1 points;Question 21;ABC Company lists total assets of $4,961, current liabilities of $381, long-term debt of $602, and 307 shares of common stock. If the market price per share is $63, what is the market-to-book ratio?;Enter your answer rounded off to two decimal points.;1 points;Question 22;ABC's current assets comprise of cash, accounts receivables, and inventory. ABC has $14,339 in cash, $5,997 in accounts receivables, and $6,508 in inventory. If the current ratio is 3.4 times, compute the quick ratio.;Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.;1 points;Question 23;Debbie wants to have $56,582 in her bank account 4 years from now. The account will pay 0.2% 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?;Enter your answer rounded off to two decimal points. Do not enter % or $ in the answer box.;1 points;Question 24;ABC Company has net working capital of $878, current assets of $5,659, long-term debt of $2,829, and equity of $1,193. What is the amount of net fixed assets?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box;1 points;Question 25;Suppose you invest $32,408. If the interest rate is 12% compounded quarterly for the first 10 years and 3% 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.;1 points;Question 26;You are given the following information about ABC Company;Interest expenses = $19,871;Times Interest Earned Ratio = 4 times;Tax Rate = 32.9%;What is the net income?;Enter your answer rounded off to two decimal points.;1 points;Question 27;Suppose an investment offers to double your money in 16 years. What annual rate of return are you being offered if interest is compounded semi-annually?;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.;1 points;Question 28;If you receive $1,977 at the end of each year for the first three years and $8,523 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 6%.;Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.;1 points

 

Paper#27836 | Written in 18-Jul-2015

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