10 Trevor wants to have $2,750,000 at retirement, which is 21 years away. He already has $125,000 in an IRA carning 6 percent annually. How much does he need to save each year, starting at the end this ycar, to reach his target? Assume he could earm 6 percent on any investment he makes )$72,671.17 b) $58,136.93 c) $65,694.74 d) $56,974.20 If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the a) futures market b) capital market c) money market d) all of the above. IL. 12. All but one of the following is true of common-size balance sheets a) Balance sheet accounts are repeesented as percentages of total assets b) Each asset and liabilliy item on the balance sheet is standardized by dividing it by total c)Each asset and liabhility item on the balance sheet is standardized by dividing it by sales. d) Common-size financial statements allow us to make meaningfual comparisons between the financial nements of two firms that are different in size Cheryl wants to invest in a bank CD that will pay her 6.99 percent compounded quarterly. If she is investing 13,000 today, when will she reach her goal of $30,000? )10.74 years (42.96 quarterly periods) b) 12.19 years (48.75 quarterly periods) c) 12.07 years(48.27 quarterly periods) d) 10.38 years (41.51 quarterly periods) 14 One reason for the existence of agency problems between managers and share holders is that a) managers know how to manage the firm better than shareholders. b) there is a separation of ownership and management of the firm. c) shareholders have unreasonable expectations about managerial performance. d) none of the above 15. Annual reports are prepared by a firm's managenment to a) c) An important function of the financial system is highlight the performance of its chief competisors. b) provide a forecast of the economy in the coming years o provide overview of thef'cial and operating a) to allow the federal govemment to view all financial communicale to sharcholders the firm's failures in the previous y 16. b) to help state governments to coordinate state tax levies c) to direct money to the best investment opportunities in the ecsomy d) all of the above