1. Compute current ratio and quick ratio of ABC, using the following given information: Short term debt=$5,000 Account payable=$4,000 Cash=$5,000 Account receivable=$3,500 Inventory=$1,000 2. The Tassel Corporation's common stock currently is selling at $50 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 10 per cent, and a debt ratio of 50 per cent, what is its return on total assets (ROA)? 3. Assume that you will receive $3,000 a year in Years 1 through 5, $2,000 a year in Years 6 through 8, and $3,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 10 per cent rate of return, what is the present value of these cash flows? 4. Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer in Launceston has recently experienced a market reevaluation. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 6 per cent, with interest being paid semiannually. The required simple rate on this debt has now risen to 15 per cent. What is the current value of this bond? 5. A share of common stock has a current price of $80.50 and is expected to grow at a constant rate of 5 per cent. If you require an 8 per cent rate of return, what is the current dividend on this stock? 1. Compute current ratio and quick ratio of ABC, using the following given information: Short term debt=$5,000 Account payable=$4,000 Cash=$5,000 Account receivable=$3,500 Inventory=$1,000 2. The Tassel Corporation's common stock currently is selling at $50 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 10 per cent, and a debt ratio of 50 per cent, what is its return on total assets (ROA)? 3. Assume that you will receive $3,000 a year in Years 1 through 5, $2,000 a year in Years 6 through 8, and $3,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 10 per cent rate of return, what is the present value of these cash flows? 4. Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer in Launceston has recently experienced a market reevaluation. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 6 per cent, with interest being paid semiannually. The required simple rate on this debt has now risen to 15 per cent. What is the current value of this bond? 5. A share of common stock has a current price of $80.50 and is expected to grow at a constant rate of 5 per cent. If you require an 8 per cent rate of return, what is the current dividend on this stock