$1.$ Using the following information, determine the average monthly net cash burn rate: annual net income $=$ $$30,000$; annual interest $=$ $$12,000$; annual cash build $=$ $$120,000$; and annual cash burn $=$ $$144,000.$

a$.$ $$2,000$

b$.$ $$1,000$

c$.$ $$4,000$

d$.$ $$3,000$

$2.$ Calculate the inventory$-$to$-$sale conversion period based on the following information: average inventories $=$ $$100,000$; average receivables $=$ $$120,000$; average payables $=$ $$40,000$; cost of goods sold $=$ $$146,000$; and net sales $=$ $$365,000.$

a$.190\mathrm{.}0$ days

b$.90\mathrm{.}0$ days

c$.250\mathrm{.}0$ days

d$.30\mathrm{.}0$ days

e$.45\mathrm{.}0$ days

$3.$ Calculate the sale$-$to$-$cash conversion period based on the following information: average inventories $=$ $$100,000$; average receivables $=$ $$120,000$; average payables $=$ $$40,000$; cost of goods sold $=$ $$146,000$; and net sales $=$ $$365,000.$

a$.90\mathrm{.}0$ days

b$.60\mathrm{.}0$ days

c$.120\mathrm{.}0$ days

d$.240\mathrm{.}0$ days

e$.45\mathrm{.}0$ days

$4.$ Suppose the real risk free rate of interest is $2\%,$ maturity risk premium is $2\%,$ inflation premium is $5\%,$ the default risk on similar debt is $2\%,$ and the liquidity premium is $2\%.$ What is the nominal interest rate on this venture's debt capital?

a$.12\%$

b$.13\%$

c$.15\%$

d$.17\%$

e$.21\%$

$5.$ Assume that you can sell a new product at $$8\mathrm{.}00$ per unit. Your variable costs are $$4\mathrm{.}00$ per unit and you fixed costs are $$30,000.$ What is your breakeven point in sales units?

a$.5,000$

b$.7,500$

c$.10,000$

d$.12,500$

e$.15,000$

$6.$ Find the "contribution profit margin" based on the following information: cash fixed costs $=$ $$65,000$; variable costs $=$ $$72,000$; and sales $=$ $$120,000.$

a$.20\%$

b$.30\%$

c$.40\%$

d$.70\%$

e$.100\%$

$7.$ A venture has net sales of $$500,000,$ cost of goods sold of $$250,000,$ operating expenses $($selling$,$ general, and administrative$)$ of $$75,000,$ and interest expenses of $$50,000.$ What is the operating profit margin?

a$.50\%$

b$.75\%$

c$.25\%$

d$.35\%$

$8.$ Estimate a venture's terminal value based on the following information: current year's net sales $=$ $$500,000$; next year's expected cash flow $=$ $$30,000$; constant future growth rate $=5\%$; and venture investors' required rate of return $=25\%.$

a$.$ $$156,846$

b$.$ $$285,714$

c$.$ $$200,000$

d$.$ $$150,000$

e$.$ $$160,000$

$9.$ Determine the net income of a "comparable" firm based on the following information: value of target firm $=$ $$12,000,000$; net income of target firm $=$ $$600,000$; stock price of "comparable" firm $=$ $$60\mathrm{.}00$; and $300,000$ shares of stock outstanding for the comparable firm.

a$.$ $$500,000$

b$.$ $$550,000$

c$.$ $$600,000$

d$.$ $$900,000$

e$.$ $$1,200,000$