Hello. I'm looking for some help completing my finance project. (10% total course grade) There are quite a few questions. (40 total) I can check the answers one time before submitting. Hoping for 100% Please help me out here! Thanks in advance.

10/22/2016 1. Assignment Print View Award: 2.50 points Problem 5-3 Future Value of an Annuity (LG2) What is the future value of a $800 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ 6246.36 eBook & Resources Guided Example 52: Decision Points Guided Example 52: Saving in the Company Pension Plan Guided Example 52: Using Excel Guided Example 52: Using the BA II Plus Calculator Guided Example 52: Using the TI83 Calculator References Worksheet Problem 53 Future Value of an Annuity (LG2) Difficulty: 1 Basic 2. Award: 2.50 points MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $701,000, Interest expense = $51,500, and Taxes = $218,000. Bullseye's has no preferred stock outstanding and 310,000 shares of common stock outstanding. What are the 2008 earnings per share? $2.26 $1.39 $1.56 $2.10 http://ezto.mheducation.com/hm.tpx 1/21 10/22/2016 Assignment Print View References Multiple Choice 3. Award: 2.50 points MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... Diculty: 1 Basic Problem 4-5 Multiyear Future Value (LG3) How much would be in your savings account in nine years after depositing $250 today if the bank pays 9 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value 542.97 $ eBook & Resources Guided Example 41: Decision Points Guided Example 41: Graduation Celebration Loan Guided Example 41: Using Excel Guided Example 41: Using the BA II Plus Calculator Guided Example 41: Using the TI83 Calculator References Worksheet Problem 45 Multiyear Future Value (LG3) Difficulty: 1 Basic 4. Award: 2.50 points Problem 4-26 Moving Cash Flows (LG5) What is the value in year 5 of a $1,700 cash flow made in year 8 if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Value in year 5 $ 1141.43 References Worksheet http://ezto.mheducation.com/hm.tpx Problem 426 Moving Cash Flows (LG5) Difficulty: 2 Intermediate 2/21 10/22/2016 Assignment Print View 5. Award: 2.50 points MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the rm's free cash ow. From the income statement, you see that Crew Cut earned an EBIT of $23.13 million, paid taxes of $3.87 million, and its depreciation expense was $7.87 million. Crew Cut's gross xed assets increased by $10.13 million from 2007 to 2008. The rm's current assets increased by $6.13 million and spontaneous current liabilities increased by $3.87 million. What is Crew Cut's operating cash ow, investment in operating capital and free cash ow for 2008, respectively in millions? $23.13, $10.13, $13.00 $23.13, $11.74, $11.39 $27.13, $12.39, $14.74 $27.13, $10.13, $17.00 References Multiple Choice 6. Award: 2.50 points MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... Diculty: 1 Basic Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ How much would you have to deposit in the savings account each month to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annuity payment $ per month References http://ezto.mheducation.com/hm.tpx 3/21 10/22/2016 Assignment Print View Worksheet Problem 4 and 55 Present Value and Annuity Payments 7. Award: 2.50 points Problem 5-11 Present Value of an Annuity Due (LG6) If the present value of an ordinary, 8year annuity is $6,100 and interest rates are 8.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $ References Worksheet Problem 511 Present Value of an Annuity Due (LG6) Difficulty: 1 Basic 8. Award: 2.50 points Problem 4-32 Solving for Time (LG8) How long will it take $2,000 to reach $6,400 when it grows at 11 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Period years eBook & Resources Guided Example 45: Decision Points Guided Example 45: Growth in Staffing Needs Guided Example 45: Using Excel Guided Example 45: Using the BA II Plus Calculator Guided Example 45: Using the TI83 Calculator References Worksheet http://ezto.mheducation.com/hm.tpx Problem 432 Solving for Time (LG8) Difficulty: 2 Intermediate 4/21 10/22/2016 Assignment Print View 9. Award: 2.50 points Problem 5-31 Compound Frequency (LG7) Payday loans are very shortterm loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks? (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Compounded annual rate % References Worksheet Problem 531 Compound Frequency (LG7) Difficulty: 3 Intermediate 10. Award: 2.50 points Problem 4-29 Solving for Rates (LG7) What annual rate of return is earned on a $1,000 investment when it grows to $2,900 in seven years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return % References Worksheet Problem 429 Solving for Rates (LG7) Difficulty: 2 Intermediate 11. Award: 2.50 points Problem 2-2 Balance Sheet (LG1) Zoeckler Mowing & Landscaping's yearend 2012 balance sheet lists current assets of $436,700, fixed assets of $551,300, current liabilities of $418,100, and longterm debt of $317,500. Calculate Zoeckler's total stockholders' equity. http://ezto.mheducation.com/hm.tpx 5/21 10/22/2016 Assignment Print View Total stockholders' equity $ References Worksheet Problem 22 Balance Sheet (LG1) Difficulty: 1 Basic 12. Award: 2.50 points Problem 5-26 Present Value (LG4) You are looking to buy a car. You can afford $610 in monthly payments for five years. In addition to the loan, you can make a $710 down payment. If interest rates are 9.00 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 55: Car Loan Debt Guided Example 55: Decision Points Guided Example 55: Using Excel Guided Example 55: Using the BA II Plus Calculator Guided Example 55: Using the TI83 Calculator References Worksheet Problem 526 Present Value (LG4) Difficulty: 3 Intermediate 13. Award: 2.50 points Problem 5-13 Future Value of an Annuity Due (LG6) If the future value of an ordinary, 8year annuity is $5,800 and interest rates are 8.0 percent, what is the future value of the same annuity due? (Round your answer to 2 decimal places.) Future value $ References http://ezto.mheducation.com/hm.tpx 6/21 10/22/2016 Assignment Print View Worksheet Problem 513 Future Value of an Annuity Due (LG6) Difficulty: 1 Basic 14. Award: 2.50 points Problem 5-9 Present Value of an Annuity (LG5) What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever? (Round your answer to 2 decimal places.) Present value $ References Worksheet Problem 59 Present Value of an Annuity (LG5) Difficulty: 1 Basic 15. Award: 2.50 points Problem 4-30 Solving for Rates (LG7) What annual rate of return is earned on a $5,000 investment when it grows to $8,250 in four years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return % References Worksheet Problem 430 Solving for Rates (LG7) Difficulty: 2 Intermediate 16. Award: 2.50 points Problem 4 and 5-8 House Appreciation and Mortgage Payments http://ezto.mheducation.com/hm.tpx 7/21 10/22/2016 Assignment Print View Say that you purchase a house for $240,000 by getting a mortgage for $210,000 and paying a $30,000 down payment. If you get a 20year mortgage with a 7 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PMT $ What would the loan balance be in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PVA $ If the house appreciates at 4 percent per year, what will be the value of the house in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FV $ How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Equity $ References Worksheet Problem 4 and 58 House Appreciation and Mortgage Payments 17. Award: 2.50 points MC Qu. 142 Interest-on-Interest Consider a $dep deposit earning rate percen... Interest-on-Interest Consider a $3,300 deposit earning 9 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)? $899.00 $3,275.00 $2,376.00 $237.60 References Multiple Choice http://ezto.mheducation.com/hm.tpx MC Qu. 142 Interest-on- Diculty: 2 Intermediate Interest Consider a $dep deposit earning rate percen... 8/21 10/22/2016 18. Assignment Print View Award: 2.50 points Problem 2-10 Free Cash Flow (LG5) Tater and Pepper Corp. reported free cash flows for 2012 of $41.1 million and investment in operating capital of $24.1 million. Tater and Pepper incurred $13.8 million in depreciation expense and paid $29.3 million in taxes on EBIT in 2012. Calculate Tater and Pepper's 2012 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.) EBIT $ m eBook & Resources Guided Example 25: Calculating Free Cash Flow Guided Example 25: Decision Points Guided Example 25: Using Excel Guided Example 25: Using the BA II Plus Calculator Guided Example 25: Using the TI 83 Calculator References Worksheet Problem 210 Free Cash Flow (LG5) Difficulty: 1 Basic 19. Award: 2.50 points Problem 2-3 Income Statement (LG1) The Fitness Studio, Inc.'s, 2012 income statement lists the following income and expenses: EBIT = $545,000, interest expense = $90,000, and net income = $424,000. Calculate the 2012 taxes reported on the income statement. Taxes $ References Worksheet Problem 23 Income Statement (LG1) Difficulty: 1 Basic http://ezto.mheducation.com/hm.tpx 9/21 10/22/2016 20. Assignment Print View Award: 2.50 points MC Qu. 148 Solving for Rates What annual rate of return is earned on a $amt... Solving for Rates What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in twelve years? 1.15% 2.15% 6.07% 6.59% References Multiple Choice 21. Award: 2.50 points MC Qu. 148 Solving for Rates What annual rate of return is earned on a $amt... Diculty: 2 Intermediate Problem 5-43 Future Value (LG1) Given an 10 percent interest rate, compute the year 9 future value if deposits of $2,700 and $3,700 are made in years 1 and 3, respectively, and a withdrawal of $1,125 is made in year 4. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 51: Decision Points Guided Example 51: Saving for a Car Guided Example 51: Using Excel Guided Example 51: Using the BA II Plus Calculator Guided Example 51: Using the TI83 Calculator References Worksheet http://ezto.mheducation.com/hm.tpx Problem 543 Future Value (LG1) Difficulty: 2 Advanced 10/21 10/22/2016 Assignment Print View 22. Award: 2.50 points Problem 5-8 Present Value of an Annuity (LG4) What's the present value of a $530 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 54: Decision Points Guided Example 54: Using Excel Guided Example 54: Using the BA II Plus Calculator Guided Example 54: Using the TI83 Calculator Guided Example 54: Value of Payments References Worksheet Problem 58 Present Value of an Annuity (LG4) Difficulty: 1 Basic 23. Award: 2.50 points Problem 4-6 Multiyear Future Value (LG3) Compute the value in 32 years of a $1,500 deposit earning 8 percent per year. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 41: Decision Points Guided Example 41: Graduation Celebration Loan Guided Example 41: Using Excel Guided Example 41: Using the BA II Plus Calculator http://ezto.mheducation.com/hm.tpx 11/21 10/22/2016 Assignment Print View Guided Example 41: Using the TI83 Calculator References Worksheet Problem 46 Multiyear Future Value (LG3) Difficulty: 1 Basic 24. Award: 2.50 points Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given a trust fund valued at $1.61 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $19,500 per month. If the trust fund is invested at a 4 percent rate, compounded monthly, how many months will it last your client once she starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Number of months References Worksheet Problem 4 and 54 Future Value and Number of Annuity Payments 25. Award: 2.50 points MC Qu. 125 Statement of Retained Earnings TriCycle, Corp. began the year 20... Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $25 million in retained earnings. The rm earned net income of $8 million in 2008 and paid $1.1 million to its preferred stockholders and $3.1 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle? $33 million $37.2 million $25 million $28.8 million http://ezto.mheducation.com/hm.tpx 12/21 10/22/2016 Assignment Print View References Multiple Choice 26. Award: 2.50 points MC Qu. 125 Statement of Retained Earnings TriCycle, Corp. began the year 20... Diculty: 1 Basic Problem 5-41 Number of Annuity Payments (LG9) Joey realizes that he has charged too much on his credit card and has racked up $4,800 in debt. If he can pay $175 each month and the card charges 16 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Time to pay off the debt months eBook & Resources Guided Example 510: Decision Points Guided Example 510: Time to Pay Off a Credit Card Balance Guided Example 510: Using Excel Guided Example 510: Using the BA II Plus Calculator Guided Example 510: Using the TI83 Calculator References Worksheet Problem 541 Number of Annuity Payments (LG9) Difficulty: 3 Intermediate 27. Award: 2.50 points Problem 5-35 Annuity Interest Rate (LG8) What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $82,000 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual interest rate % eBook & Resources http://ezto.mheducation.com/hm.tpx 13/21 10/22/2016 Assignment Print View Guided Example 58: Computing Interest Rate Needed Guided Example 58: Decision Points Guided Example 58: Using Excel Guided Example 58: Using the BA II Plus Calculator Guided Example 58: Using the TI83 Calculator References Worksheet Problem 535 Annuity Interest Rate (LG8) Difficulty: 3 Intermediate 28. Award: 2.50 points Problem 5-25 Present Value (LG4) You are looking to buy a car. You can afford $490 in monthly payments for four years. In addition to the loan, you can make a $1,400 down payment. If interest rates are 8.00 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 55: Car Loan Debt Guided Example 55: Decision Points Guided Example 55: Using Excel Guided Example 55: Using the BA II Plus Calculator Guided Example 55: Using the TI83 Calculator References Worksheet Problem 525 Present Value (LG4) Difficulty: 3 Intermediate 29. Award: 2.50 points Problem 2-19 Income Statement (LG1) http://ezto.mheducation.com/hm.tpx 14/21 10/22/2016 Assignment Print View You have been given the following information for Corky's Bedding Corp.: a. Net sales = $12,600,000. b. Cost of goods sold = $9,200,000. c. Other operating expenses = $280,000. d. Addition to retained earnings = $1,010,000. e. Dividends paid to preferred and common stockholders = $390,000. f. Interest expense = $970,000. The firm's tax rate is 30 percent. Calculate the depreciation expense for Corky's Bedding Corp. Depreciation expense $ References Worksheet Problem 219 Income Statement (LG1) Difficulty: 3 Intermediate 30. Award: 2.50 points Problem 5-48 Low Financing or Cash Back? (LG4, LG9) A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase, or a 2.8 percent APR, 4year loan. The price of the car is $24,000 and you could obtain a 4year loan from your credit union, at 7.8 percent APR. Which deal is cheaper? 2.8 percent APR offer $2 000 cash back offer References Worksheet Problem 548 Low Financing or Cash Back? (LG4, LG9) Difficulty: 2 Advanced 31. Award: 2.50 points Problem 5-46 EAR of Add-On Interest Loan (LG7, LG8) To borrow $1,500, you are offered an add on interest loan at 8.4 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) http://ezto.mheducation.com/hm.tpx 15/21 10/22/2016 Assignment Print View Equal payments $ Compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR % References Worksheet Problem 546 EAR of AddOn Interest Loan (LG7, LG8) Difficulty: 2 Advanced 32. Award: 2.50 points MC Qu. 149 Solving for Rates What annual rate of return is earned on a $amt... Solving for Rates What annual rate of return is earned on a $3,100 investment when it grows to $6,700 in seventeen years? 4.37% 2.16% 4.64% 1.16% References Multiple Choice 33. Award: 2.50 points MC Qu. 149 Solving for Rates What annual rate of return is earned on a $amt... Diculty: 2 Intermediate Problem 5-6 Present Value (LG3) Compute the present value of a $6,000 deposit in year 3 and another $5,500 deposit at the end of year 6 using an 9 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ References http://ezto.mheducation.com/hm.tpx 16/21 10/22/2016 Assignment Print View Worksheet Problem 56 Present Value (LG3) Difficulty: 1 Basic 34. Award: 2.50 points Problem 5-7 Present Value of an Annuity (LG4) What's the present value of a $970 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 54: Decision Points Guided Example 54: Using Excel Guided Example 54: Using the BA II Plus Calculator Guided Example 54: Using the TI83 Calculator Guided Example 54: Value of Payments References Worksheet Problem 57 Present Value of an Annuity (LG4) Difficulty: 1 Basic 35. Award: 2.50 points Problem 5-50 Amortization Schedule (LG9) Create the amortization schedule for a loan of $4,400, paid monthly over two years using an 10 percent APR. (Round your answers to 2 decimal places.) Month 1 2 3 4 5 6 http://ezto.mheducation.com/hm.tpx Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance 17/21 10/22/2016 Assignment Print View 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 References Worksheet Problem 550 Amortization Schedule (LG9) Difficulty: 2 Advanced 36. Award: 2.50 points Problem 5-40 Loan Payments (LG9) You wish to buy a $10,200 dining room set. The furniture store offers you a 3year loan with an 10 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $ per month How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $ per month eBook & Resources Guided Example 59: Decision Points Guided Example 59: Monthly Mortgage Payments Guided Example 59: Using Excel Guided Example 59: Using the BA II Plus Calculator Guided Example 59: Using the TI83 Calculator http://ezto.mheducation.com/hm.tpx 18/21 10/22/2016 Assignment Print View References Worksheet Problem 540 Loan Payments (LG9) Difficulty: 3 Intermediate 37. Award: 2.50 points Problem 5-44 Future Value (LG1) Given a 9 percent interest rate, compute the year 6 future value if deposits of $3,000 and $4,000 are made in years 2 and 3, respectively, and a withdrawal of $975 is made in year 5. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 51: Decision Points Guided Example 51: Saving for a Car Guided Example 51: Using Excel Guided Example 51: Using the BA II Plus Calculator Guided Example 51: Using the TI83 Calculator References Worksheet Problem 544 Future Value (LG1) Difficulty: 2 Advanced 38. Award: 2.50 points MC Qu. 150 Future Value At age age1 you invest $amt that earns rate1 percen... Future Value At age 25 you invest $2,000 that earns 9.5 percent each year. At age 35 you invest $2,000 that earns 12.5 percent per year. In which case would you have more money at age 60? Both yield the same amount at age 60. At age 35 invest $2,000 at 12.5 percent. There is not enough information to determine which case earns the most money at age 60. http://ezto.mheducation.com/hm.tpx 19/21 10/22/2016 Assignment Print View At age 25 invest $2,000 at 9.5 percent. References Multiple Choice 39. Award: 2.50 points MC Qu. 150 Future Value At age age1 you invest $amt that earns rate1 percen... Diculty: 3 Advanced Problem 5-21 Present Value (LG3) Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ References Worksheet Problem 521 Present Value (LG3) Difficulty: 3 Intermediate 40. Award: 2.50 points MC Qu. 116 Income Statement Barnyard, Inc.'s 2008 income statement lists th... Income Statement Barnyard, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $506,500, Interest expense = $45,000, and Taxes = $158,500. Barnyard's has no preferred stock outstanding and 140,000 shares of common stock outstanding. What are its the 2008 earnings per share? (Round your answer to 2 decimal places.) $3.30 $2.16 $3.62 $2.49 References http://ezto.mheducation.com/hm.tpx 20/21 10/22/2016 Assignment Print View Multiple Choice http://ezto.mheducation.com/hm.tpx MC Qu. 116 Income Statement Barnyard, Inc.'s 2008 income statement lists th... Diculty: 1 Basic 21/21 Problem 5-3 Future Value of an Annuity (LG2) What is the future value of a $800 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: What is the future value? Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $701,000, Interest expense = $51,500, and Taxes = $218,000. Bullseye's has no preferred stock outstanding and 310,000 shares of common stock outstanding. What are the 2008 earnings per share? Answer: A, B, C or D? A-$2.26 B-$1.39 C-$1.56 D-$2.10 How much would be in your savings account in nine years after depositing $250 today if the ban k pays 9 percent per year? (Do not round intermediate calculations and round your final answer to 2 deci mal places.) Answer: What is the future value? What is the value in year 5 of a $1,700 cash flow made in year 8 if interest rates are 10 percent? ( Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: What is the value in year five? A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do no t need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculatio ns and round your final answer to 2 decimal places.) Answer: Present value? How much would you have to deposit in the savings account each month to be able to pay the bil l? Annuity payment $ per month? If the present value of an ordinary, 8year annuity is $6,100 and interest rates are 8.0 percent, wha t's the present value of the same annuity due? (Round your answer to 2 decimal places.) Answer: Present value? How long will it take $2,000 to reach $6,400 when it grows at 11 percent per year? (Do not roun d intermediate calculations and round your final answer to 2 decimal places.) Answer: years Payday loans are very shortterm loans that charge very high interest rates. You can borrow $240 t oday and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rat e charged for only two weeks? (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Answer: Compounded annual rate % What annual rate of return is earned on a $1,000 investment when it grows to $2,900 in seven ye ars? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Annual rate of return % Zoeckler Mowing & Landscaping's yearend 2012 balance sheet lists current assets of $436,700, f ixed assets of $551,300, current liabilities of $418,100, and longterm debt of $317,500. Calculate Zoeckler's total stockholders' equity. Answer: You are looking to buy a car. You can afford $610 in monthly payments for five years. In additio n to the loan, you can make a $710 down payment. If interest rates are 9.00 percent APR, what price of c ar can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Present value $ If the future value of an ordinary, 8year annuity is $5,800 and interest rates are 8.0 percent, what is the future value of the same annuity due? (Round your answer to 2 decimal places.) Answer: Future value $ What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever? (Round your answer to 2 decimal places.) Answer: Present value $ What annual rate of return is earned on a $5,000 investment when it grows to $8,250 in four year s? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Annual rate of return % Say that you purchase a house for $240,000 by getting a mortgage for $210,000 and paying a $3 0,000 down payment. If you get a 20year mortgage with a 7 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Payment $ What would the loan balance be in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: PVA $ If the house appreciates at 4 percent per year, what will be the value of the house in five years? ( Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: FV $ How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Equity $ Interest-on-Interest Consider a $3,300 deposit earning 9 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)? Answer: A, B, C or D? A- $899.00 B-$3,275.00 C-$2,376.00 D-$237.60 Tater and Pepper Corp. reported free cash flows for 2012 of $41.1 million and investment in oper ating capital of $24.1 million. Tater and Pepper incurred $13.8 million in depreciation expense and pai d $29.3 million in taxes on EBIT in 2012. Calculate Tater and Pepper's 2012 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.) Answer: EBIT $ The Fitness Studio, Inc.'s, 2012 income statement lists the following income and expenses: EBIT = $545,000, interest expense = $90,000, and net income = $424,000. Calculate the 2012 taxes reported on the income statement. Answer: Taxes $ Solving for Rates What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in twelve years? Answer: A, B, C, or D? A-1.15% B-2.15% C-6.07% D-6.59% Given an 10 percent interest rate, compute the year 9 future value if deposits of $2,700 and $3,70 0 are made in years 1 and 3, respectively, and a withdrawal of $1,125 is made in year 4. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Future value $ What's the present value of a $530 annuity payment over four years if interest rates are 8 percent ? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Present value $ Compute the value in 32 years of a $1,500 deposit earning 8 percent per year. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Future value $ Your client has been given a trust fund valued at $1.61 million. She cannot access the money unti l she turns 65 years old, which is in 20 years. At that time, she can withdraw $19,500 per month. If the trust fund is invested at a 4 percent rate, compounded monthly, how many months will it la st your client once she starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Number of months Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $25 million in retained earnings. The rm earned net income of $8 million in 2008 and paid $1.1 million to its preferred stockholders and $3.1 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle? Answer: A, B, C, or D? A-$33 million B-$37.2 million C-$25 million D-$28.8 million Joey realizes that he has charged too much on his credit card and has racked up $4,800 in debt. If he can pay $175 each month and the card charges 16 percent APR (compounded monthly), how long wi ll it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Time to pay off the debt months What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $82,000 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Annual interest rate % You are looking to buy a car. You can afford $490 in monthly payments for four years. In additio n to the loan, you can make a $1,400 down payment. If interest rates are 8.00 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Present value $ You have been given the following information for Corky's Bedding Corp.: a. Net sales = $12,600,000. b. Cost of goods sold = $9,200,000. c. Other operating expenses = $280,000. d. Addition to retained earnings = $1,010,000. e. Dividends paid to preferred and common stockholders = $390,000. f. Interest expense = $970,000. The firm's tax rate is 30 percent. Calculate the depreciation expense for Corky's Bedding Corp. Answer: Depreciation expense $ A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase, or a 2.8 percent APR, 4year loan. The price of the car is $24,000 and you could obtain a 4year loan from your credit union, at 7.8 percent APR. Which deal is cheaper? Answer: 2.8 percent APR offer OR $2000 cash back offer? To borrow $1,500, you are offered an add on interest loan at 8.4 percent with 12 monthly payme nts. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Answer: Equal payments $ Compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer: EAR % Solving for Rates What annual rate of return is earned on a $3,100 investment when it grows to $6,700 in seventeen years? Answer: A, B, C, or D? A-4.37% B-2.16% C-4.64% D-1.16% Compute the present value of a $6,000 deposit in year 3 and another $5,500 deposit at the end of year 6 using an 9 percent interest rate. (Do not round intermediate calculations and round your final ans wer to 2 decimal places.) Answer: Present value $ What's the present value of a $970 annuity payment over four years if interest rates are 8 percent ? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Present value $ You wish to buy a $10,200 dining room set. The furniture store offers you a 3year loan with an 1 0 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your f inal answer to 2 decimal places.) Answer: Payment $ per month How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Payment $ per month Given a 9 percent interest rate, compute the year 6 future value if deposits of $3,000 and $4,000 are made in years 2 and 3, respectively, and a withdrawal of $975 is made in year 5. (Do not round interme diate calculations and round your final answer to 2 decimal places.) Answer: Future value $ Future Value At age 25 you invest $2,000 that earns 9.5 percent each year. At age 35 you invest $2,000 that earns 12.5 percent per year. In which case would you have more money at age 60? Answer: A,B, OR C? A-Both yield the same amount at age 60. B-At age 35 invest $2,000 at 12.5 percent. C-There is not enough information to determine which case earns the most money at age 60. Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer: Present value $ Income Statement Barnyard, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $506,500, Interest expense = $45,000, and Taxes = $158,500. Barnyard's has no preferred stock outstanding and 140,000 shares of common stock outstanding. What are its the 2008 earnings per share? (Round your answer to 2 decimal places.) Answer: A, B, C or D? A-$3.30 B-$2.16 C-$3.62 D-$2.49 10/22/2016 Assignment Print View 1. Award: 2.50 points Problem 5-3 Future Value of an Annuity (LG2) What is the future value of a $800 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ 6246.36 eBook & Resources Guided Example 52: Decision Points Guided Example 52: Saving in the Company Pension Plan Guided Example 52: Using Excel Guided Example 52: Using the BA II Plus Calculator Guided Example 52: Using the T I83 Calculator References Worksheet 2. Problem 53 Future Value of an Annuity (LG2) Difficulty: 1 Basic Award: 2.50 points MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $701,000, Interest expense = $51,500, and Taxes = $218,000. Bullseye's has no preferred stock outstanding and 310,000 shares of common stock outstanding. What are the 2008 earnings per share? px $2.26 $1.39 $1.56 1/21 10/22/2016 $2.10 http://ezto.m heducation.com /hm .t px Assignment Print View 2/21 References Multiple Choice MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... 3. Diculty: 1 Basic Award: 2.50 points Problem 4-5 Multiyear Future Value (LG3) How much would be in your savings account in nine years after depositing $250 today if the bank pays 9 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ 542.97 eBook & Resources Guided Example 41: Decision Points Guided Example 41: Gradua tion Celebr ation Loan Guided Example 41: Using Excel Guided Example 41: Using the BA II Plus Calculator Guided Example 41: Using the T I83 Calculator References Worksheet 4. Problem 45 Multiyear Future Value (LG3) Difficulty: 1 Basic Award: 2.50 points Problem 4-26 Moving Cash Flows (LG5) What is the value in year 5 of a $1,700 cash flow made in year 8 if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Value in year 5 References Worksheet $ Problem 426 Moving Cash Flows (LG5) 1141.43 Difficulty: 2 Intermediate 5. Award: 2.50 points MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the rm's free cash ow. From the income statement, you see that Crew Cut earned an EBIT of $23.13 million, paid taxes of $3.87 million, and its depreciation expense was $7.87 million. Crew Cut's gross xed assets increased by $10.13 million from 2007 to 2008. The rm's current assets increased by $6.13 million and spontaneous current liabilities increased by $3.87 million. What is Crew Cut's operating cash ow, investment in operating capital and free cash ow for 2008, respectively in millions? $23.13, $10.13, $13.00 $23.13, $11.74, $11.39 $27.13, $12.39, $14.74 $27.13, $10.13, $17.00 References Multiple Choice MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... 6. Diculty: 1 Basic Award: 2.50 points Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ How much would you have to deposit in the savings account each month to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annuity payment $ per month References Worksheet 7. Problem 4 and 55 Present Value and Annuity Payments Award: 2.50 points Problem 5-11 Present Value of an Annuity Due (LG6) If the present value of an ordinary, 8year annuity is $6,100 and interest rates are 8.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value References Worksheet 8. $ Problem 511 Present Value of an Annuity Due (LG6) Difficulty: 1 Basic Award: 2.50 points Problem 4-32 Solving for Time (LG8) How long will it take $2,000 to reach $6,400 when it grows at 11 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Period years eBook & Resources Guided Example 45: Decision Points Guided Example 45: Growth in Staffing Need s Guided Example 45: Using Excel Guided Example 45: Using the BA II Plus Calculator Guided Example 45: Using the T I83 Calculator References Worksheet Problem 432 Solving for Time (LG8) Difficulty: 2 Intermediate 9. Award: 2.50 points Problem 5-31 Compound Frequency (LG7) Payday loans are very shortterm loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks? (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Compounded annual rate References Worksheet 10. % Problem 531 Compound Frequency (LG7) Difficulty: 3 Intermediate Award: 2.50 points Problem 4-29 Solving for Rates (LG7) What annual rate of return is earned on a $1,000 investment when it grows to $2,900 in seven years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return References Worksheet 11. % Problem 429 Solving for Rates (LG7) Difficulty: 2 Intermediate Award: 2.50 points Problem 2-2 Balance Sheet (LG1) Zoeckler Mowing & Landscaping's yearend 2012 balance sheet lists current assets of $436,700, fixed assets of $551,300, current liabilities of $418,100, and longterm debt of $317,500. Calculate Zoeckler's total stockholders' equity. Total stockholders' equity References Worksheet 12. $ Problem 22 Balance Sheet (LG1) Difficulty: 1 Basic Award: 2.50 points Problem 5-26 Present Value (LG4) You are looking to buy a car. You can afford $610 in monthly payments for five years. In addition to the loan, you can make a $710 down payment. If interest rates are 9.00 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 55: Car Loan Debt Guided Example 55: Decision Points Guided Example 55: Using Excel Guided Example 55: Using the BA II Plus Calculator Guided Example 55: Using the T I83 Calculator References Worksheet 13. Problem 526 Present Value (LG4) Difficulty: 3 Intermediate Award: 2.50 points Problem 5-13 Future Value of an Annuity Due (LG6) If the future value of an ordinary, 8year annuity is $5,800 and interest rates are 8.0 percent, what is the future value of the same annuity due? (Round your answer to 2 decimal places.) Future value References $ Worksheet 14. Problem 513 Future Value of an Annuity Due (LG6) Difficulty: 1 Basic Award: 2.50 points Problem 5-9 Present Value of an Annuity (LG5) What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever? (Round your answer to 2 decimal places.) Present value References Worksheet 15. $ Problem 59 Present Value of an Annuity (LG5) Difficulty: 1 Basic Award: 2.50 points Problem 4-30 Solving for Rates (LG7) What annual rate of return is earned on a $5,000 investment when it grows to $8,250 in four years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return References Worksheet 16. % Problem 430 Solving for Rates (LG7) Difficulty: 2 Intermediate Award: 2.50 points Problem 4 and 5-8 House Appreciation and Mortgage Payments Say that you purchase a house for $240,000 by getting a mortgage for $210,000 and paying a $30,000 down payment. If you get a 20year mortgage with a 7 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PMT $ What would the loan balance be in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PVA $ If the house appreciates at 4 percent per year, what will be the value of the house in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FV $ How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Equity $ References Worksheet 17. Problem 4 and 58 House Appreciation and Mortgage Payments Award: 2.50 points MC Qu. 142 Interest-on-Interest Consider a $dep deposit earning rate percen... Interest-on-Interest Consider a $3,300 deposit earning 9 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)? $899.00 $3,275.00 $2,376.00 $237.60 References Multiple Choice MC Qu. 142 Interest-onInterest Consider a $dep deposit earning rate percen... Diculty: 2 Intermediate 18. Award: 2.50 points Problem 2-10 Free Cash Flow (LG5) Tater and Pepper Corp. reported free cash flows for 2012 of $41.1 million and investment in operating capital of $24.1 million. Tater and Pepper incurred $13.8 million in depreciation expense and paid $29.3 million in taxes on EBIT in 2012. Calculate Tater and Pepper's 2012 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.) EBIT $ m eBook & Resources Guided Example 25: Calculating F ree Cash F low Guided Example 25: Decision Points Guided Example 25: Using Excel Guided Example 25: Using the BA II Plus Calculator Guided Example 25: Using the T I 83 Calculator References Worksheet 19. Problem 210 Free Cash Flow (LG5) Difficulty: 1 Basic Award: 2.50 points Problem 2-3 Income Statement (LG1) The Fitness Studio, Inc.'s, 2012 income statement lists the following income and expenses: EBIT = $545,000, interest expense = $90,000, and net income = $424,000. Calculate the 2012 taxes reported on the income statement. Taxes References Worksheet $ Problem 23 Income Statement (LG1) Difficulty: 1 Basic 20. Award: 2.50 points MC Qu. 148 Solving for Rates What annual rate of return is earned on a $amt... Solving for Rates What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in twelve years? 1.15% 2.15% 6.07% 6.59% References Multiple 21. Choice Diculty: 2 Intermediate MC Qu. 148 Solving for Rates What annual rate of return is earned on a $amt... Award: 2.50 points Problem 5-43 Future Value (LG1) Given an 10 percent interest rate, compute the year 9 future value if deposits of $2,700 and $3,700 are made in years 1 and 3, respectively, and a withdrawal of $1,125 is made in year 4. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 51: Decision Points Guided Example 51: Saving for a Car Guided Example 51: Using Excel Guided Example 51: Using the BA II Plus Calculator Guided Example 51: Using the T I83 Calculator References Worksheet Problem 543 Future Value (LG1) Difficulty: 2 Advanced 22. Award: 2.50 points Problem 5-8 Present Value of an Annuity (LG4) What's the present value of a $530 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 54: Decision Points Guided Example 54: Using Excel Guided Example 54: Using the BA II Plus Calculator Guided Example 54: Using the T I83 Calculator Guided Exam ple 54: Value of Payments References Worksheet 23. Problem 58 Present Value of an Annuity (LG4) Difficulty: 1 Basic Award: 2.50 points Problem 4-6 Multiyear Future Value (LG3) Compute the value in 32 years of a $1,500 deposit earning 8 percent per year. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 41: Decision Points Guided Example 41: Gradua tion Celebr ation Loan Guided Example 41: Using Excel Guided Example 41: Using the BA II Plus Calculator Guided Example 41: Using the T I83 Calculator References Worksheet 24. Problem 46 Multiyear Future Value (LG3) Difficulty: 1 Basic Award: 2.50 points Problem 4 and 5-4 Future Value Number of Annuity Payments and Your client has been given a trust fund valued at $1.61 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $19,500 per month. If the trust fund is invested at a 4 percent rate, compounded monthly, how many months will it last your client once she starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Number of months References Worksheet 25. Problem 4 and 54 Future Value and Number of Annuity Payments Award: 2.50 points MC Qu. 125 Statement of Retained Earnings TriCycle, Corp. began the year 20... Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $25 million in retained earnings. The rm earned net income of $8 million in 2008 and paid $1.1 million to its preferred stockholders and $3.1 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle? $33 million $37.2 million $25 million $28.8 million References Multiple Choice MC Qu. 125 Statement of Retained Earnings TriCycle, Corp. began the year 20... 26. Diculty: 1 Basic Award: 2.50 points Problem 5-41 Number Annuity Payments (LG9) of Joey realizes that he has charged too much on his credit card and has racked up $4,800 in debt. If he can pay $175 each month and the card charges 16 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Time to pay off the debt months eBook & Resources Guided Example 510: Decision Points Guided Example 510: Time to Pay Off a Credit Card Balance Guided Example 510: Using Excel Guided Example 510: Using the BA II Plus Calculator Guided Example 510: Using the T I83 Calculator References Worksheet 27. Problem 541 Number of Annuity Payments (LG9) Difficulty: 3 Intermediate Award: 2.50 points Problem 5-35 Annuity Interest Rate (LG8) What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $82,000 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual interest rate eBook & Resources % Guided Example 58: Computing Interest Rate Needed Guided Example 58: Decision Points Guided Example 58: Using Excel Guided Example 58: Using the BA II Plus Calculator Guided Example 58: Using the T I83 Calculator References Worksheet 28. Problem 535 Annuity Interest Rate (LG8) Difficulty: 3 Intermediate Award: 2.50 points Problem 5-25 Present Value (LG4) You are looking to buy a car. You can afford $490 in monthly payments for four years. In addition to the loan, you can make a $1,400 down payment. If interest rates are 8.00 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 55: Car Loa n Debt Guided Example 55: Decision Points Guided Example 55: Using Excel Guided Example 55: Using the BA II Plus Calculator Guided Example 55: Using the T I83 Calculator References Worksheet 29. Problem 525 Present Value (LG4) Difficulty: 3 Intermediate Award: 2.50 points Problem 2-19 Income Statement (LG1) You have been given the following information for Corky's Bedding Corp.: a. Net sales = $12,600,000. b. Cost of goods sold = $9,200,000. c. Other operating expenses = $280,000. d. Addition to retained earnings = $1,010,000. e. Dividends paid to preferred and common stockholders = $390,000. f. Interest expense = $970,000. The firm's tax rate is 30 percent. Calculate the depreciation expense for Corky's Bedding Corp. Depreciation expense References Worksheet 30. $ Problem 219 Income Statement (LG1) Difficulty: 3 Intermediate Award: 2.50 points Problem 5-48 Low Financing Cash Back? (LG4, LG9) or A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase, or a 2.8 percent APR, 4year loan. The price of the car is $24,000 and you could obtain a 4year loan from your credit union, at 7.8 percent APR. Which deal is cheaper? 2.8 percent APR offer $2 000 cash back offer References Worksheet 31. Problem 548 Low Financing or Cash Back? (LG4, LG9) Difficulty: 2 Advanced Award: 2.50 points Problem 5-46 EAR of Add-On Interest Loan (LG7, LG8) To borrow $1,500, you are offered an add on interest loan at 8.4 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal payments $ Compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR % References Worksheet 32. Problem 546 EAR of AddOn Interest Loan (LG7, LG8) Difficulty: 2 Advanced Award: 2.50 points MC Qu. 149 Solving for Rates What annual rate of return is earned on a $amt... Solving for Rates What annual rate of return is earned on a $3,100 investment when it grows to $6,700 in seventeen years? 4.37% 2.16% 4.64% 1.16% References Multiple 33. Choice Diculty: 2 Intermediate MC Qu. 149 Solving for Rates What annual rate of return is earned on a $amt... Award: 2.50 points Problem 5-6 Present Value (LG3) Compute the present value of a $6,000 deposit in year 3 and another $5,500 deposit at the end of year 6 using an 9 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ References Worksheet 34. Problem 56 Present Value (LG3) Difficulty: 1 Basic Award: 2.50 points Problem 5-7 Present Value of an Annuity (LG4) What's the present value of a $970 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ eBook & Resources Guided Example 54: Decision Points Guided Example 54: Using Excel Guided Example 54: Using the BA II Plus Calculator Guided Example 54: Using the T I83 Calculator Guided Exam ple 54: Value of Payments References Worksheet 35. Problem 57 Present Value of an Annuity (LG4) Difficulty: 1 Basic Award: 2.50 points Problem 5-50 Amortization Schedule (LG9) Create the amortization schedule for a loan of $4,400, paid monthly over two years using an 10 percent APR. (Round your answers to 2 decimal places.) Beginning Total Interest Principal Ending Month Balance Payment Paid Paid Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 References Worksheet 36. Problem 550 Amortization Schedule (LG9) Difficulty: 2 Advanced Award: 2.50 points Problem 5-40 Payments (LG9) Loan You wish to buy a $10,200 dining room set. The furniture store offers you a 3year loan with an 10 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $ per month How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $ per month eBook & Resources Guided Example 59: Decision Points Guided Example 59: Monthly Mor tgage Payments Guided Example 59: Using Excel Guided Example 59: Using the BA II Plus Calculator Guided Example 59: Using the T I83 Calculator References Worksheet 37. Problem 540 Loan Payments (LG9) Difficulty: 3 Intermediate Award: 2.50 points Problem 5-44 Future Value (LG1) Given a 9 percent interest rate, compute the year 6 future value if deposits of $3,000 and $4,000 are made in years 2 and 3, respectively, and a withdrawal of $975 is made in year 5. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ eBook & Resources Guided Example 51: Decision Points Guided Example 51: Saving for a Car Guided Example 51: Using Excel Guided Example 51: Using the BA II Plus Calculator Guided Example 51: Using the T I83 Calculator References Worksheet 38. Problem 544 Future Value (LG1) Difficulty: 2 Advanced Award: 2.50 points MC Qu. 150 Future Value At age age1 you invest $amt that earns rate1 percen... Future Value At age 25 you invest $2,000 that earns 9.5 percent each year. At age 35 you invest $2,000 that earns 12.5 percent per year. In which case would you have more money at age 60? Both yield the same amount at age 60. At age 35 invest $2,000 at 12.5 percent. There is not enough information to determine which case earns the most money at age 60. At age 25 invest $2,000 at 9.5 percent. References Multiple Choice MC Qu. 150 Future Value At age age1 you invest $amt that earns rate1 percen... 39. Diculty: 3 Advanced Award: 2.50 points Problem 5-21 Present Value (LG3) Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value References Worksheet 40. $ Problem 521 Present Value (LG3) Difficulty: 3 Intermediate Award: 2.50 points MC Qu. 116 Income Statement Barnyard, Inc.'s 2008 income statement lists th... Income Statement Barnyard, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $506,500, Interest expense = $45,000, and Taxes = $158,500. Barnyard's has no preferred stock outstanding and 140,000 shares of common stock outstanding. What are its the 2008 earnings per share? (Round your answer to 2 decimal places.) px $3.30 $2.16 $3.62 $2.49 20/2 1 References http://ezto.m heducation.com /hm .t px 21/2 1 Multiple Choice MC Qu. 116 Income Statement Barnyard, Inc.'s 2008 income statement lists th... Diculty: 1 Basic 10/24/2016 Assignment Print View Score: 63.48/100 Points http://ezto.mheducation.com/hm.tpx?todo=printview 63.48 % 1/45 10/24/2016 1. Assignment Print View Award: 2.50 out of 2.50 points Problem 5-3 Future Value of an Annuity (LG2) What is the future value of a $800 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ 6,172.49 Future value eBook & Resources Guided Example 52: Decision Points Guided Example 52: Saving in the Company Pension Plan Guided Example 52: Using Excel Guided Example 52: Using the BA II Plus Calculator Guided Example 52: Using the TI83 Calculator References Worksheet Problem 53 Future Value of an Annuity (LG2) Problem 5-3 Future Value of an Annuity (LG2) What is the future value of a $800 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ 6,172.49 0.1% Explanation: http://ezto.mheducation.com/hm.tpx?todo=printview 2/45 10/24/2016 2. Assignment Print View Award: 2.50 out of 2.50 points MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $701,000, Interest expense = $51,500, and Taxes = $218,000. Bullseye's has no preferred stock outstanding and 310,000 shares of common stock outstanding. What are the 2008 earnings per share? $1.56 $2.10 $1.39 $2.26 Using the setup of an Income Statement in Table 2.2: EBIT Interest expense EBT Taxes Net income $701,000 -51,500 649,500 -218,000 $431,500 Thus, Earnings per share (EPS) = $431,500 310,000 = $1.39 per share References Multiple Choice MC Qu. 117 Income Statement Bullseye, Inc.'s 2008 income statement lists th... http://ezto.mheducation.com/hm.tpx?todo=printview 3/45 10/24/2016 3. Assignment Print View Award: 2.50 out of 2.50 points Problem 4-5 Multiyear Future Value (LG3) How much would be in your savings account in nine years after depositing $250 today if the bank pays 9 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ 542.97 Future value eBook & Resources Guided Example 41: Decision Points Guided Example 41: Graduation Celebration Loan Guided Example 41: Using Excel Guided Example 41: Using the BA II Plus Calculator Guided Example 41: Using the TI83 Calculator References Worksheet Problem 45 Multiyear Future Value (LG3) Problem 4-5 Multiyear Future Value (LG3) How much would be in your savings account in nine years after depositing $250 today if the bank pays 9 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $ 542.97 1% Explanation: FVN = PV (1 + i)N FV9 = $250 (1 + 0.09)9 = $250 2.17189 = $542.97 http://ezto.mheducation.com/hm.tpx?todo=printview 4/45 10/24/2016 4. Assignment Print View Award: 0 out of 2.50 points Problem 4-26 Moving Cash Flows (LG5) What is the value in year 5 of a $1,700 cash flow made in year 8 if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ 10,378.67 Value in year 5 References Worksheet Problem 426 Moving Cash Flows (LG5) Problem 4-26 Moving Cash Flows (LG5) What is the value in year 5 of a $1,700 cash flow made in year 8 if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Value in year 5 $ 1,277.24 1% Explanation: PV = FVN/(1 + i)N PV5 = FV8 / (1 + i)(8 - 5) PV5 = $1,700 / (1 + 0.10)(3) = $1,700 / 1.33100 = $1,277.24 http://ezto.mheducation.com/hm.tpx?todo=printview 5/45 10/24/2016 5. Assignment Print View Award: 0 out of 2.50 points MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the rm's free cash ow. From the income statement, you see that Crew Cut earned an EBIT of $23.13 million, paid taxes of $3.87 million, and its depreciation expense was $7.87 million. Crew Cut's gross xed assets increased by $10.13 million from 2007 to 2008. The rm's current assets increased by $6.13 million and spontaneous current liabilities increased by $3.87 million. What is Crew Cut's operating cash ow, investment in operating capital and free cash ow for 2008, respectively in millions? $23.13, $10.13, $13.00 $27.13, $12.39, $14.74 $27.13, $10.13, $17.00 $23.13, $11.74, $11.39 Crew Cut's operating cash ow was: OCF = EBIT - Taxes + Depreciation = ($23.13 m. - $3.87 m + $7.87 m) = $27.13 m Investment in operating capital for 2008 was: IOC = Gross xed assets + Net operating working capital = $10.13 m. + ($6.13 m. - $3.87 m.) = $12.39 m. Accordingly, Crew Cut's free cash ow for 2008 was: FCF = Operating cash ow - Investment in operating capital = $27.13 m. - $12.39 m. = $14.74 m. In other words, in 2008, Crew Cut had cash ows of $14.74 million available to pay its stockholders and debtholders. References Multiple Choice MC Qu. 121 Free Cash Flow You are considering an investment in Crew Cut, In... http://ezto.mheducation.com/hm.tpx?todo=printview 6/45 10/24/2016 6. Assignment Print View Award: 1.25 out of 2.50 points Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ 2,976.00 How much would you have to deposit in the savings account each month to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ 124.00 Annuity payment per month References Worksheet Problem 4 and 55 Present Value and Annuity Payments Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ 2,862.04 0.1% How much would you have to deposit in the savings account each month to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annuity payment $ 124.28 1% per month Explanation: PV = $3,100 (1+ 0.04/12)24 = $2,862.04 http://ezto.mheducation.com/hm.tpx?todo=printview 7/45 10/24/2016 7. Assignment Print View Award: 0 out of 2.50 points Problem 5-11 Present Value of an Annuity Due (LG6) If the present value of an ordinary, 8year annuity is $6,100 and interest rates are 8.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $ 35,054.50 References Worksheet Problem 511 Present Value of an Annuity Due (LG6) Problem 5-11 Present Value of an Annuity Due (LG6) If the present value of an ordinary, 8year annuity is $6,100 and interest rates are 8.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $ 6,588.00 Explanation: PVA8 due = $6,100 (1 + 0.080) = $6,588.00 http://ezto.mheducation.com/hm.tpx?todo=printview 8/45 10/24/2016 8. Assignment Print View Award: 2.50 out of 2.50 points Problem 4-32 Solving for Time (LG8) How long will it take $2,000 to reach $6,400 when it grows at 11 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Period 11.14 years eBook & Resources Guided E