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Given the following income statement and balance sheet for WoodStock company.

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Income Statement;Sales;2014;2013;77000 70000;Operating costs excluding;depreciation;Depreciation and amortization;65520 59500;2660;2520;Earnings before interest and taxes;Less interest;Taxable Income;Taxes (35%);8820;840;7980;2793;7980;700;7280;2548;Net income available to;shareholders;5187;4732;Common Dividends;?;?;1400;3332;Balance Sheet;Assets;Cash;Short-term investments;Accounts receivables;Inventories;2014;2013;3850;770;19250;11550;3500;700;17500;10500;Total current;Assets;Net plant and equipment;Total assets;35420 32200;26950 24500;62370 56700;Liabilities and Equity;Accounts payable;Accruals;Notes payable;Total current liablities;Long-term debt;Total liabilities;7700;3850;2688;14238;7700;21938;Common stock (paid-in;capital);30184 30800;Retained earnings;Total common equity;10647 7000;40831 37800;Total liablities and equity;7000;3500;1400;11900;7000;18900;62769 56700;Questions;Given the following income statement and balance sheet for WoodStock company. How much total;dividends were paid in fiscal year 2014 and how much were the retained earnings for the year 2014?;Question 2;You can invest your money in CD 1 that pays 14% rate if return per year compounded;semiannually or you can invest it in CD 2 that pays 14% rate of return per year;compounded weekly. You have $50,000 to invest for 5 years. At the end of 5 years;how much more money will have if you invest your money in CD 2 instead of CD 1?;What is the yield to maturity on a bond that pays 8% annual coupon? The coupon;is paid quarterly. The bond has six and half years left to maturity and is currently;selling for $820. The bond has a face value of $1,000.;An investor has two bonds (Bond A & Bond B) in her portfolio. Each bond matures in 8;years, has a face value of $1,000, has a yield to maturity of 7.5%. Bond A pays an annual;coupon of 5%, Bond B pays an annual coupon of 10% (rates are always quoted annually;regardless of the coupon frequency). Both bonds pay their coupons semiannually.;Assuming that the yield to maturity of each bond stays the same over its entire life, what;will be price of each bond at the end of each year of its life. In other words, complete this;table.;Suppose, you got a $40,000 car loan at 5% annual interest rate and the life of the loan is 1;year. The payments are made monthly. After 4 months of making your monthly payments;how much principal would you still owe the bank?;You got a $40,000 car loan at an annual interest rate of 5%. The length of the loan is 1 year and the;payments are made monthly. What is your monthly loan payment? How can you save per month if you;find out on the very next day of getting the loan that you can refinance it at 3% annual interest rate.

 

Paper#30144 | Written in 18-Jul-2015

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