1. Describe the four general areas included in the study of finance. Why is it important for a person who works in the financial markets to understand the responsibilities of someone who works in managerial finance?

2. Discuss some limitations associated with performing ratio (financial statement) analysis. What is the most important ingredient (input) in completing ratio analysis? Explain why.

3. Horatios Hot Dogs current assets equal $260,000. The companys return on assets (ROA) is 4 percent, its net income is $140,000, its long-term debt equals $1,755,000, and 35 percent of its assets are financed with common equity. Horatios has no preferred stock. Compute the companys current ratio.

4. Would you rather have a savings account paying 5 percent interest compounded semiannually or 5 percent compounded daily? Explain.

5. Mario wants to take a trip that costs $4,750, but currently, he only has $2,260 saved. If Mario invests this money at 7 percent compounded annually, how long will it take for his investment to grow to $4,750?