Question
1. A firm's financial statements showed sales of $600,000 operating expense of $70,000, accounts receivable of $100,000 interest expense of $50,000 and cost of goods
1. A firm's financial statements showed sales of $600,000 operating expense of $70,000, accounts receivable of $100,000 interest expense of \$50,000 and cost of goods sold of $20.000 . the company pays 21% of taxes. what is their net income?
2. A company has had EPS of $5 over the last year and expects its earnings to grow at a constant rate of 3%. Your required rate of return for this company is 12%. If the company retains 60% of its earnings for growth and pays out the rest as dividends, what is the value of the stock today?
3. If you borrow $20,000 today and your monthly payments are $331.46, how many payments must you make to pay off the loan if you are being charged 6%APR compounded monthly?
4.Given the following data for a company, what is their total liabilities? Profit margin = 5% Net income = $30,000 Net working capital = -$ 100,000 Total asset turnover = 1.2 Fixed asset turnover =1.5 ROE =25%
5. A 20-year $1000 par value band has a 6% coupon rate (paid semi-annually. If the price is $1100, what is the effective annual yield (EAY)
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