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28 Finance Question

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Question;Question;1;ABC's current assets comprise of cash, accounts;receivables, and inventory. ABC has $10,517 in cash, $9,505 in;accounts receivables, and $9,848 in inventory. If the current ratio is 1.8;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;2;The present value of a 17-year annuity is $151,256. If;the interest rate is 10% 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;3;What is the future value of $90,095 invested for 10;years at 8% compounded semi-annually?;Enter your;answer rounded off to two decimal points. Do not enter $ in the answer box.;1 points;Question;4;Suppose you invest $17,520. If the interest rate is 14%;compounded quarterly for the first 10 years and 11% 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;5;Which one of the following capital budgeting technique;ignores time value of money?;Internal Rate of Return (IRR);Profitability Index;Net Present Value (NPV);Payback;Modified Internal Rate of Return;(MIRR);1 points;Question;6;Suppose you take a mortgage for $147,324 for 19 years;with annual payments. If the annual interest rate is 7.3%, 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;7;You;are given the following data for ABC Inc.;Net income = $600;Net operating profit after taxes (NOPAT) = $1,242;Total assets = $2,500;Stockholders' equity = $1,800;Total debt = $700;Total operating capital = $5,259;Barnes' weighted average cost of capital is 15.9%.;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;8;ABC Company lists total assets of $4,067, current;liabilities of $365, long-term debt of $705, and 231 shares of common;stock. If the market price per share is $81, what is the market-to-book;ratio?;Enter your answer rounded off to two decimal points.;1 points;Question;9;If you receive $521 at the end;of each year for the first three years and $5,344 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;Question;10;If;you receive $477 at the end of each year for the first two years and $380;at the end of each year for the next two years.;Assume interest rate is 7%. 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;11;Consider a taxable bond with a yield of 9.4% and a;tax-exempt municipal bond with a yield of 5.5%. 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;12;ABC Company has net working capital of $2,332, current;assets of $5,868, long-term debt of $2,960, and equity of $2,478. 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;13;You are given the following information about ABC Company;Interest expenses = $26,758;Times Interest Earned Ratio = 3.7 times;Tax Rate = 30.9%;What is;the net income?;Enter your;answer rounded off to two decimal points.;1 points;Question;14;How many years will it take to triple your money at 17%;compounded monthly?;Enter your;answer rounded off to TWO decimal points. Do not enter "years" in the;answer box.;1 points;Question;15;ABC is reviewing a project that;will cost $2,099.The project will produce cash flows $702 at the end of;each year for the first two years and $707 at the end of each year for the;next three years. What is the profitability index? Assume interest rate is;6%.;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;16;1.;ABC, Inc.;has total assets of $156,997, current assets of $29,097, current ratio of 2.4;and equity multiplier of 6. Compute long term debt.;Enter your answer rounded off to two decimal points. Do not enter;$ in the answer box.;1 points;Question;17;1.ABC, Inc. has a total asset turnover of 1.8 and a net profit;margin of 13.8%. The firm has a return on equity of 26.4%. 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;18;ABC Company has $620,683 of operating income after all;costs but before $34,495 of interest income, $53,187 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;19;Suppose;an investment offers to double your money in 14 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;20;ABC Company;offers a perpetuity which pays annual payments of $8,888. This contract;sells for $252,557 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;21;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;14.82%;13.47%;13.85%;14.39%;12.71%;1 points;Question;22;Debbie wants to have $44,119 in her bank;account 4 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?;Enter;your answer rounded off to two decimal points. Do not enter % or $ in the;answer box.;1 points;Question;23;ABC Company has a debt ratio of 0.37. 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;24;What is the net present value of the following cash flows?;Assume an interest rate of 10%;Year;CF;0;-$11,723;1;$6,747;2;$5,194;3;$7,383;Enter your answer rounded off to two decimal points. Do;not enter $ or comma in the answers box.;1 points;Question;25;ABC Company had beginning retained earnings;of $2,283. During the year, the company reported sales of $19,604, costs;of $7,343, depreciation of $1,986, dividends of $1,070, and interest paid;of $2,244. The tax rate is 15 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;26;ABC Company earned $568,087 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;27;What is the effective rate of 28.13% 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;28;ABC Company has total assets of $770,209. There are 44,746;shares outstanding with a market value of $33 per share. If the net profit;margin is 9.1% and the total asset turnover is 2.4, what is the;price/earnings (P/E) ratio?;Enter your;answer rounded off to two decimal points.

 

Paper#49172 | Written in 18-Jul-2015

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