Question
19. Which one of the following is a working capital decision? a. What debt-equity ratio is best suited to the firm? b. What is the
19. Which one of the following is a working capital decision?
a. What debt-equity ratio is best suited to the firm?
b. What is the cost of debt financing?
c. Should the firm borrow money for five or for ten years?
d. How much cash should the firm keep in reserve?
25. City Plumbing has inventory of $287,800, equity of $538,800, total assets of $998,700, and sales of $1,027,400. What is the common-size percentage for the inventory account?
a. 28.02percent
b. 33.66 percent
c. 28.82 percent
d. 31.68 percent
Travis invests $7,500 today into a retirement account. He expects to earn 10.4 percent, compounded annually, on his money for the next 30years. Assume this is the only deposit he makes into the account.34. How much money will he have in his account at the end of 15years?
a. $33,828.66
b. $33,082.43
c. $32,982.22d. $34,802.9935.
How much money will he have in his account when he retires 30years from now?
a. $145,526.56
b. $146,026.96
c. $145,926.26
d. $144,926.26
How long will it take to double your savings if you earn 6.4 percent interest, compounded annually?(Hint: Use your calculator, not The Rule of 72)
a. 11.89 years
b. 11.39 years
c. 11.17 years
d. 10.58 years
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