Finance problems

Question 1

1.

How many years will it take to triple your money at 17%
compounded monthly?
Enter your answer rounded off to TWO decimal points. Do not enter
"years" in the answer box.
1 points
Question 2

1.

Suppose you invest $19,792. If the interest rate is 7%
compounded quarterly for the first 10 years and 14% compounded
monthly for the next 5 years, what is the future value after 15 years?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 3

1.

A project has the following cash flows. What is the internal
rate of return?
Year 0 1 2 3
Cash flow -$121,000 68,150 $42,200 $39,100
13.47%
14.39%
13.85%
14.82%
12.71%
1 points
Question 4

1.

The present value of a 10-year annuity is $181,566. If the
interest rate is 11% and payments are made at the end of each period,
what is the amount of each payment?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 5

1.

Debbie wants to have $19,640 in her bank account 5 years
from now. The account will pay 1.2% interest per month. How much
money does she need to put in her bank account at the end of each
month to achieve this goal?
Enter your answer rounded off to two decimal points. Do not enter %
or $ in the answer box.
1 points
Question 6

1.

If you receive $825 at the end of each year for the first two
years and $628 at the end of each year for the next two years.

Assume interest rate is 5%. What is the value at the end of the 4th year?
That is. solve for FV at the end of the 4th year.

Note: Enter your answer rounded off to two decimal points. Do not
enter $ in the answer box. For example, if your answer is $12.345 then
enter as 12.35 in the answer box.
1 points
Question 7

1.

ABC, Inc. has a total asset turnover of 2.7 and a net profit
margin of 5.5%. The firm has a return on equity of 23.6%. Calculate
Marshall’s debt ratio.
Enter your answer as a percentage rounded off to two decimal points.
Do not enter % in the answer box. For example, if you get 0.1234567,
then enter as 12.35 in the answer box.

1 points
Question 8

1.

ABC Company has net working capital of $2,964, current
assets of $3,273, long-term debt of $1,111, and equity of $5,320. What
is the amount of net fixed assets?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box
1 points
Question 9

1.

ABC Company has $439,077 of operating income after all
costs but before $59,298 of interest income, $51,157 of dividend
income, and taxes. What is the tax expense?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 10

1.

What is the net present value of the following cash flows?
Assume an interest rate of 8%
Year
0
1
2
3

CF
-$12,583
$7,045
$6,092
$6,785

2.

Enter your answer rounded off to two decimal points. Do not
enter $ or comma in the answers box.

3.
1 points
Question 11

1.

ABC's current assets comprise of cash, accounts receivables,
and inventory. ABC has $13,956 in cash, $7,508 in accounts
receivables, and $7,019 in inventory. If the current ratio is 2.7 times,
compute the quick ratio.
Note: Enter your answer rounded off to two decimal points. For
example, if your answer is 12.345 then enter as 12.35 in the answer
box.
1 points
Question 12

1.

ABC Company has a debt ratio of 0.73. What is the debtequity (D/E) ratio?
Note: Enter your answer rounded off to two decimal points. For
example, if your answer is 0.123456789 then enter as 0.12 in the
answer box.

1 points
Question 13

1.

ABC Company offers a perpetuity which pays annual
payments of $19,081. This contract sells for $255,564 today. What is
the interest rate?
Note: Enter your answer in percentages rounded off to two decimal
points. Do not enter % in the answer box. For example, if your answer
is 0.12345 then enter as 12.35 in the answer box.
1 points
Question 14

1.

Suppose an investment offers to double your money in 31
years. What annual rate of return are you being offered if interest is
compounded semi-annually?
Note: Enter your answer in percentages rounded off to two decimal
points. Do not enter % in the answer box. For example, if your answer
is 0.12345 then enter as 12.35 in the answer box.
1 points
Question 15

1.

Which one of the following capital budgeting technique
ignores time value of money?
Profitability Index
Modified Internal Rate of Return (MIRR)
Payback

Net Present Value (NPV)
Internal Rate of Return (IRR)
1 points
Question 16

1.

ABC Company earned $435,273 in taxable income for the
year. How much tax does the company owe on this income?
Note: Enter your answer rounded off to two decimal points. Do not
enter $ or comma in the answer box. For example, if your answer is
$12.345 then enter as 12.35 in the answer box.
1 points
Question 17

1.

If you receive $1,939 at the end of each year for the first three
years and $2,224 at the end of each year for the next two years. What is
the future value of this cash flow stream? Assume interest rate is 4%.
Note: Enter your answer rounded off to two decimal points. Do not
enter $ or comma in the answer box. For example, if your answer is
$12.345 then enter as 12.35 in the answer box.
1 points
Question 18

1.

Suppose you take a mortgage for $124,884 for 16 years with
annual payments. If the annual interest rate is 4.5%, calculate the total
interest amount paid over the life of the loan. That is, calculate the total
interest paid in 16 years.
Hint: Use the amortization table.
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 19

1.

ABC is reviewing a project that will cost $2,213.The project
will produce cash flows $772 at the end of each year for the first two
years and $595 at the end of each year for the next three years. What is
the profitability index? Assume interest rate is 9%.
Note: Enter your answer rounded off to two decimal points. For
example, if your answer is 12.345 then enter as 12.35 in the answer
box.
1 points
Question 20

1.

ABC Company had beginning retained earnings of $2,188.
During the year, the company reported sales of $21,574, costs of
$7,869, depreciation of $1,304, dividends of $915, and interest paid of

$2,181. The tax rate is 18 percent. What is the retained earnings
balance at the end of the year?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 21

1.

ABC Company lists total assets of $4,947, current liabilities of
$241 , long-term debt of $322 , and 346 shares of common stock. If the
market price per share is $65, what is the market-to-book ratio?
Enter your answer rounded off to two decimal points.
1 points
Question 22

1.

You are given the following information about ABC
Company:
Interest expenses = $25,509
Times Interest Earned Ratio = 4 times
Tax Rate = 36.3%
What is the net income?
Enter your answer rounded off to two decimal points.
1 points
Question 23

1.

What is the future value of $26,200 invested for 21 years at
5% compounded semi-annually?
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 24

1.

What is the effective rate of 23.85% compounded quarterly?

Note: Enter your answer in percentages rounded off to two decimal
points. Do not enter % in the answer box. For example, if your answer
is 0.12345 then enter as 12.35 in the answer box.
1 points
Question 25

1.

You are given the following data for ABC Inc.:
Net income = $600
Net operating profit after taxes (NOPAT) = $1,291
Total assets = $2,500
Stockholders' equity = $1,800
Total debt = $700
Total operating capital = $6,613
Barnes' weighted average cost of capital is 15.8%.
What is the economic value added (EVA)?

Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.
1 points
Question 26

1.

ABC, Inc. has total assets of $155,311, current assets of
$29,370, current ratio of 3.9, and equity multiplier of 7.3. Compute
long term debt.
Enter your answer rounded off to two decimal points. Do not enter $ in
the answer box.

1 points
Question 27

1.

Consider a taxable bond with a yield of 10.5% and a taxexempt municipal bond with a yield of 4.7%. At what tax rate would
you be indifferent between the two bonds?
Note: Enter your answer in percentages rounded off to two decimal
points. Do not enter % in the answer box. For example, if your answer
is 0.12345 then enter as 12.35 in the answer box.
1 points
Question 28

1.

ABC Company has total assets of $789,024. There are 52,104
shares outstanding with a market value of $27 per share. If the net
profit margin is 9.4% and the total asset turnover is 2.5, what is the
price/earnings (P/E) ratio?
Enter your answer rounded off to two decimal points.