1. The Falmouth Company had a profit margin of 5 percent on sales of $5,500 during the last year.If its return on assets was 8 percent, what was the value of total assets?
2. A.4,062.50
3. B.3,125.00
4. C.3,750.00
5. D.3,437.50
6. E.4,687.50
7. F.4,375.00

2. You plan to retire with $800,000 in 20 years.How much should you depositeach monthinto an account that pays 9.5% annual rate compounded monthly? (Note: Compounding frequency is the same as the deposit frequency. Answers are rounded.)

1. A.$1,080
2. B.$1,124
3. C.$2,056
4. D.$1,276
5. E.$1,198
6. F.$1,709

3.How long will it take for $1,000 to grow to $2,000 at a rate of 18 percent compoundedmonthly?

1. A.4.84
2. B.3.88
3. C.7.28
4. D.5.57
5. E.6.48
6. F.5.83

4.You are given the following information for last year for Four Corners, Inc. (FCI).

Sales$200,000Increase in net fixed assets$15,000SG&A Expenses$15,000Cost of goods sold$80,000Interest expense$9,000Depreciation expense$8,000Taxes$21,000New equity raised$8,000Net increase (or decrease) in long-term debt($2,500)Dividends$15,000What was thechange. in net working capital during last year?

1. A.$ 24,500
2. B.$ 38,100
3. C.$ 29,100
4. D.$ 47,100
5. E.$ 33,500
6. F.$ 42,500

1. Use the following information for MGB, Inc. for this problem.
3. MSB Inc.AssetsCurrent assetsCash12,500Accounts receivable9,200Inventory15,500Total37,200Fixed assetsNet plant and equipment50,164Total assets87,364Liabilities and owners' equityCurrent liabilitiesAccounts payable7,000Notes payable5,600Total12,600Long-term debt20,000Owners' equityCommon stock and paid-in surplus32,440Accumulated retained earnings22,324Total54,764Total liabilities and owners' equity87,364Income statementSales72,000-Cost of goods sold26,200Gross Margin45,800-SG&A18,000-Depreciation3,600EBIT24,200-Interest paid2,000Taxable income22,200Taxes30%6,660Net income15,540Dividends40%6,216Retained earnings60%9,324Shares of stock outstanding15,000Market price per share29
5. What are the values of the three ratios in the DuPont identity?
6. A.0.2158, 0.8241, and 1.5953
7. B.0.1238, 0.6313, and 1.6354
8. C.0.1716, 0.7304, and 1.6682
9. D.0.1716, 0.7219, and 1.6878
10. E.0.1238, 0.6313, and 1.7030
11. F.0.2158, 0.8331, and 1.6057

1. BC Lean, Inc. (BCL) had sales of $200,000 on which it earned a net income of $20,000. It has a total debt of $48,000 and total equity of $60,000. Last year, it paid dividends of $6,000. What is its sustainable growth rate (SGR)?
2. A.68.75%
3. B.30.43%
4. C.45.00%
5. D.36.36%
6. E.25.00%
7. F.55.56%

1. You plan to retire in 30 years with $1 million. You have an investment available that provides a rate of return of 7.5% per year, compounded monthly.How much will you have to depositevery monthinto this investment account to reach your retirement goal?
2. A.$670.98
3. B.$380.98
4. C.$437.90
5. D.$502.14
6. E.$605.80
7. F.$742.15

1. You are planning to retire in 15 years with $1,000,000.You can earn 12% compoundedmonthly. How much do you need to investtoday? (Note: Answers are rounded.)
2. A.$182,560
3. B.$157,820
4. C.$211,260
5. D.$166,785
6. E.$193,500
7. F.$143,775

1. An investment promises to quadruple your money in eight years. If the interest is compounded monthly, what effective annual rate would you earn? (Hint: Calculate the monthly rate and convert that to the effective annual rate, EAR.)
2. A.21.90%
3. B.41.42%
4. C.16.65%
5. D.25.99%
6. E.18.92%
7. F.31.95%

1. You are given the following information for Mobility Research, Inc. (MRI).
3. Sales$200,000Costs$105,000SG&A$20,000Interest$22,000Dividend paid$10,000Retained Earnings Added$22,000Total Assets$85,000Equity$45,000Tax Rate35%
5. How much was the depreciation charge for MRI? (Hint: Prepare the income statement. You will have to work backwards to find the missing data.)
6. A.$3,769
7. B.$11,923
8. C.$20,077
9. D.$1,231
10. E.$7,846
11. F.$16,000

1. You deposit $3,000 at the end of everysix months
2. into an account that pays 11% interest compoundedmonthly. How much will be in the account after 5 years?
3. A.$45,252
4. B.$37,011
5. C.$42,668
6. D.$35,278
7. E.$38,858
8. F.$48,044

1. You just won the lottery!You wish to put away enough money so that you can withdraw $6,000per monthfor 40 years.You can earn 9% rate compounded monthly on any funds you deposit.How much will you have to deposit now to meet your goal?
2. A.$714,970
3. B.$745,691
4. C.$765,313
5. D.$785,850
6. E.$777,845
7. F.$790,262

1. You are 20 years old. You deposit $200 per month for 9 years into an account paying 12 percent annual rate, compounded monthly. After that, you stop making any new deposits but leave the money in the account, earning the same rate. How much money will be in the account when you become 54 years old?
2. A.$763,410
3. B.$1,354,505
4. C.$1,058,679
5. D.$1,452,785
6. E.$905,595
7. F.$1,213,776
8. We are given the following information for Pinanski, Inc.
10. Sales$130,000Debt50,000Dividends5,000Equity40,000Interest rate7%Net income14,000Tax rate30%
12. Assume the company has no short-term debt. Also, assume that all asset turnover, profit margin, and dividend payout ratios remain constant. What is the company?s return on invested capital (ROIC)? (Hint: First, find EBIT working backwards.)
13. A.13.51%
14. B.18.28%
15. C.20.24%
16. D.22.45%
17. E.16.52%
18. F.14.94%