Question: PLEASE I NEED A HELP...... I sent it a long time ago and no one helped me it are small questions 1. You have just
PLEASE I NEED A HELP......
I sent it a long time ago and no one helped me it are small questions
1. You have just applied for a job contract at Kaplan Company. This company will pay you $75 at the end of the first year, $225 at the end of the second year, and $300 at the end of the fourth year. Currently you have a saving account in the bank that pays you a rate of 8% compounded annually. What is the future value of such contract at the end of the fourth year?*
a) $1,000
b) $300
c) $657
d) $557
2. You want to quit your job and go back to school for a law
degree 4 years from now, and you plan to save $3,500 per year, beginning
immediately. You will make 4 deposits in an account that pays 5.7% interest.
How much will you have 4 years from today?*
a) $15,112
b) $16,112
c) $17,112
d) $21,250
3. You deposited $5000 into an account at an annual interest of
8% compounded semiannually. What is the future value of this $5,000 after 4
years?*
a) $8,112
b) $7,112
c) $1,250
d) $6,843
4. You deposit $8,000 in a bank account today. You make another
deposit of $14,000 into the account in year one and you make a third deposit of
$10,000 in year two. The bank pays interest at 8 percent compounded annually.
How much will you have in your account in year 3?*
a) $37,207
b) $35,207
c) $39,207
d) $40,502
5. You have just won the lottery and you will receive 10 annual
beginning-of-year payments of $5 million each. If you expect to earn a 9%
compounded semi-annually, what will be the current value of the lottery
payments?*
a) $67,966,468
b) $47,986,467
c) $97,211,422
d) $27,956,468
6. What's the future value of $1,500 after 5 years if the
appropriate interest rate is 6%, compounded semiannually?*
a) $2,020
b) $5,016
c) $2,016
d) $1,500
7. SAJ sales last year were $435,000, its operating costs
including Depreciation were $362,500, and its interest charges were $12,500.
What was the firm's times-interest-earned (TIE) ratio?*
a) 4.72
b) 5.80
c) 5.23
d) 5.51
8. SAMI Co. has inventory turnover of 4x, it has sales of
$200,000, in addition it has current assets of $270,000 and current liabilities
of $80,000. The quick ratio for the company is:*
a) 2.75x
b) 2.80x
c) 3.37x
d) 4..23x
9. Lina Co. has Quick ratio of 3x, sales of $120,000, in
addition it has current assets of $170,000 and current liabilities of $50,000.
The inventory turnover ratio for the company is:*
a) 3.00x
b) 4.00x
c) 5.00x
d) 6.00x
10. Miriam Co. fixed assets are $325,000, it has sales of
$625,000, earnings before interest and taxes of $200,000, and its year-end
inventories are $60,000. The fixed assets turnover ratio of the firm is:*
a) 1.82x
b) 1.92x
c) 10.41x
d) 10.51x
11. JANA's Co. manufacturing recently reported Net income of
$350,000, Interest expense $112,000. It has ROA of 8% and it fall in the 30%
tax bracket. The Basic earning power (BEP) of the company is:*
a) 8.00%
b) 12.05%
c) 13.98%
d) 15.89%
12. What is the future value of a 5-year ordinary annuity with
annual payments of $200, evaluated at a 15 percent interest rate?*
a) $ 670.44
b) $ 842.91
c) $1,522.64
d) $1,348.48
13. What is the present value of a 7-year ordinary annuity with
annual payments of $300, evaluated at a 10 percent interest rate?*
a) $ 670.43
b) $ 842.91
c) $1,460.52
d) $1,522.64
14. Assume that you will receive $2,000 a year in Years 1 and 2,
zero dollars in year 3, $3,000 a year in Years 4 and 5, and $4,000 in Year 6,
with all cash flows to be received at the end of the year. If you require a 14
percent rate of return. You will accumulate (future value) at end of year
6:*
a) $ 9,851
b) $13,250
c) $11,714
d) $18,547
15. Naronath & Co. has a DSO of 30 days, and its annual
sales are $6,500,000. What is its accounts receivable balance? Assume that it
uses 365-day year.*
a) $17,808
b) $216,666
c) $534,247
d) $593,607
16. Firm X has a Return on Equity (ROE) equal to 10%, a total
debt ratio equal to 0.6. If the firm has an asset turnover ratio of 0.54, what
is its profit margin?*
a) 7.4%
b) 3.08%
c) 9%
d) 8.5%
17. A company has an ROA of 8%, a 1.5% profit margin, and an ROE
of 10%. What is its equity multiplier?*
a) 5.33
b) 6.66
c) 1.25
d) 0.8
18. Brauer Corp. has an equity multiplier of 1.66, and its
assets are financed with some combinations of long-term debt and common equity.
What is its debt ratio?*
a) 60%
b) 39.76%
c) 66%
d) None of the above.
19. If an employee deposits $1000 at the end of each year into
his company's plan which pays 7% interest compounded annually, how much will he
have in the account at the end of 10 years?*
a) $19,671.51
b) $7,023.58
c) $13,816.45
d) $10,000.00
20. Find the present value of an ordinary annuity with payments
of $500 a year for 5 years, if interest rates are 8% compounded
annually.*
a) $1996.36
b) $1701.46
c) $2993.30
d) $1656.06
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
