1. Zephre Manufacturing Co. has sales of $1,125 million. They expect sales to grow at the rate of 6.5% annually. How long will it take for sales to double?

2. Explain what you think a yield curve would look like in a period of economic expansion.

3. Spokane Company uses a lock box in Seattle. They process $300,000 in checks a day, and the average check size is $250. The process saves two days in float and one half-day in processing. The bank charges 15 cents per check. There are 270 business days in the year. The company figures it costs them 4% to carry the accounts receivable. Which method is better: lock box or carrying the accounts for an extra 2.5 days?

4. Crescent Industries management is planning on replacing some machinery in its plant. The projected cash flows are shown below. The firm uses an 18% cost of capital. Compute the NPV of the proposed investment opportunity.

Net Present Value Calculations

Year	Cash Flow
0	($3,300,000)
1	$875,123
2	$966,222
3	$1,145,000
4	$1,250,399
5	$1,504,455

5. Explain what rating agencies are and what effect their ratings have on bonds.

6.What is a stock market index?

7.Think of a business you would like to start, or maybe you already have one. Discuss the best way to finance your working capital and why.

8. Why are traditional sources of funding not usually available for new or emerging businesses?

9. Explain why managers of firms might prefer that their firms stock be traded in a moderate per-share range rather than a high-share price range. How do firms keep their shares trading in that range?