1.Using the following information, determine the average monthly net cash burn rate:annual net income = $30,000; annual interest = $12,000; annual cash build = $120,000; and annual cash burn = $144,000.

a.$2,000

b.$1,000

c.$4,000

d.$3,000

2.Calculate the inventory-to-sale conversion period based on the following information:average inventories = $100,000; average receivables = $120,000; average payables = $40,000; cost of goods sold = $146,000; and net sales = $365,000.

a.190.0 days

b.90.0 days

c.250.0 days

d.30.0 days

e.45.0 days

3.Calculate the sale-to-cash conversion period based on the following information:average inventories = $100,000; average receivables = $120,000; average payables = $40,000; cost of goods sold = $146,000; and net sales = $365,000.

a.90.0 days

b.60.0 days

c.120.0 days

d.240.0 days

e.45.0 days

4.Suppose the real risk free rate of interest is 2%, maturity risk premium is 2%, inflation premium is 5%, the default risk on similar debt is 2%, and the liquidity premium is 2%.What is the nominal interest rate on this venture's debt capital?

a.12%

b.13%

c.15%

d.17%

e.21%

5.Assume that you can sell a new product at $8.00 per unit.Your variable costs are $4.00 per unit and you fixed costs are $30,000.What is your breakeven point in sales units?

a.5,000

b.7,500

c.10,000

d.12,500

e.15,000

6.Find the "contribution profit margin" based on the following information:cash fixed costs = $65,000; variable costs = $72,000; and sales = $120,000.

a.20%

b.30%

c.40%

d.70%

e.100%

7.A venture has net sales of $500,000, cost of goods sold of $250,000, operating expenses (selling, general, and administrative) of $75,000, and interest expenses of $50,000.What is the operating profit margin?

a.50%

b.75%

c.25%

d.35%

8.Estimate a venture's terminal value based on the following information:current year's net sales = $500,000; next year's expected cash flow = $30,000; constant future growth rate = 5%; and venture investors' required rate of return = 25%.

a.$156,846

b.$285,714

c.$200,000

d.$150,000

e.$160,000

9.Determine the net income of a "comparable" firm based on the following information:value of target firm = $12,000,000; net income of target firm = $600,000; stock price of "comparable" firm = $60.00; and 300,000 shares of stock outstanding for the comparable firm.

a.$500,000

b.$550,000

c.$600,000

d.$900,000

e.$1,200,000