Assignment Question(s):

1. Critically Explain the phrase "a dollar today is worth more than a dollar tomorrow."

2. Ahmad deposits $1,200 in her bank today. If the bank pays 4 percent simple

interest, how much money will she have at the end of five years? What if the bank

pays compound interest? How much of the earnings will be interest on interest?

3. Lemmon Enterprises has a total asset turnover of 2.1 and a net profit margin of

7.5%. If its equity multiplier is 1.90, what is the ROE for Lemmon Enterprises?

4. Critically explain the economic role of brokers and dealers. How does each make a profit?

5. BBB company had cash and marketable securities worth $400,134 accounts

payables worth $2,490,357, inventory of $1,321,500, accounts receivables of

$2,188,128, short-term notes payable worth $120,000, other current liabilities of

200,000, and other current assets of $521,800. What is the company's net working capital?

6. If Bob and Judy combine their savings of $1,260 and $975, respectively, and

deposit this amount into an account that pays 2% annual interest, compounded

monthly, what will the account balance be after 4 years?