e. 7.14 During the latest year Ruth Corp, had sales of $300.000 anda net income of $18,000, and its year- end assets were $200,000. The firm's total del to total assets ratio was 30%. Based on the Du Pont equation, what was the firm's ROE? a. 12.86% b. 13.56% c. 13.88% d. 16.33% e. 16.67% XI Corp's total assets at the end of last year were $377,500. Its EBT was $48,000 and EBIT was $52,000. What was its basic earning power (BEP) ratio? a. 14.38% b. 13.77% c. 12.72% d. 13.23% e. 15.30% Bank A offers to lend you $100,000 at a nominal rate of 6%, compounded quarterly. Bank B offers to lend you the same amount at a nominal rate of 7%, compounded monthly. What is the effective annual rate (EAR) charged by Bank A? a. 6.14% b. 6.00% c. 7.00% d. 6.17% e. 7.23% Joe has $6,000 invested in a bank that pays 5.1% annually. How long will it take for his funds to triple? a. 10.53 years b. 13.93 years c. 21.43 years d. 22.09 years e. None of the above You hope to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $6,500 per year, beginning immediately. You will make three deposits in an account that earns 4.8% interest. Under these assumptions, how much will you have 3 years from today? a. $18,608.56 b. $20,450.98 c. $21,432.62 d. $18,465.03 e. None of the above