1. Tech Inc. sells all its merchandise on credit. Find out the ROE knowing the following financial information about the company:

DSO = 60 days

Profit margin = 4%

Total assets = $3,000,000

Accounts receivable = $150,000 and a debt ratio of 64%.

2. "The proper goal of the financial manager should be to maximize the firm's expected sales". Do you agree with this statement? Justify your answer.

3. You are given the following information about Alpha Co. from which you have to estimate the market price per share.

Total stockholders' equity = $2,000,000

NI = $200,000

Earnings per share = $2.00

Market/Book ratio = 0.20

4. Alpha Co. needs to borrow funds to support operations during the summer. Alpha's CFO is trying to decide whether to borrow from the Santander Bank or the Bank of Galicia. The loan offered by Santander Bank has a 8.2% nominal rate, whereas the loan offered by the Bank of Galicia has a 8.0% nominal interest rate with monthly payments. Which bank should Alpha use for the loan? Justify your answer.