1) Reno Revolvers has an EPS of $1.60, a free cash flow per share of $4.20, and a price/free cash flow ratio of 8.0. What is its P/E ratio? Do not round intermediate calculations. Round answer to two decimal places.

2) Needham Pharmaceuticals has a profit margin of 4% and an equity multiplier of 1.5. Its sales are $130 million and it has total assets of $60 million. What is its return on equity (ROE)? Do not round intermediate calculations. Round answer to two decimal places.

3) Profit Margin and Debt Ratio

Assume that the following relationships for the Haslam Corporation:

Sales/total assets 1.8

Return on assets (ROA) 4%

Return on equity (ROE) 7%

Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round answers to two decimal places.

Profit margin:____ %

Liabilities-to-assets ratio:___%

Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round answer to two decimal places. ______%

4) Current and Quick Ratios

The Nelson Company has $1,175,000 in current assets and $470,000 in current liabilities. Its initial inventory level is $305,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round answer to the nearest dollar. _____ $

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round answer to two decimal places.

5) Times-Interest-Earned Ratio

The Morrit Corporation has $1,140,000 of debt outstanding, and it pays an interest rate of 9% annually. Morrit's annual sales are $6 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 3 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round answer to two decimal places.

6) What is the future value of a 12%, 5-year ordinary annuity that pays $650 each year? Do not round intermediate calculations. Round answer to the nearest cent.

$_______

If this were an annuity due, what would its future value be? Do not round intermediate calculations. Round answer to the nearest cent.

$________