2. Belvedere Inc. has an annual payroll of $52 million. The firm pays employees every two weeks on Friday afternoon. Last month, the books were closed on the Tuesday after payday. How much is the payroll accrual at the end of the month?

3. Use the following tax brackets for taxable income: $10,000$50,000 $50,000$250,000 Over $250,000 Bracket $0$10,000 Compute the average tax rate for the following taxable income amounts a. $20,000 b. $125,000 c. $350,000 d. $1,000,000

3. If an investor has a short term view on her investments and in a time of high interest rates - which is better stocks or bonds? Why?

4. Explain the difference between common and preferred stock.

5. If you own 3 stocks A, B, and C. What is your total return of your portfolio? Stock $ invested Return A $ 6,000 6 % B 9,000 9 % C 15,000 11 %

6. Explain the RISK/ REWARD theory?

7. GM issued a $ 1,000, 30-year bond 5 years ago at 9 % interest. Comparable bonds yield 6 % today. What should GM bond sell for now?

8. Define each variable in the equation P = (D1 + P1) / (1 + R) 9. Solve the NPV and solve for the Payback YR Cash Flow 0 -$26,000 1 11,000 2 14,000 3 11,000 with the required rate equal to 6%