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I need answers to these questions with in one hour. Please help! thanks Question 1.1. Suppose a U.S. treasury bond will pay $2,500 five years

I need answers to these questions with in one hour. Please help! thanks

Question 1.1. Suppose a U.S. treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?

  • $1,928.78
  • $2,030.30
  • $2,131.81
  • $2,238.40

Question 2.2. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today?

  • $585.43
  • $614.70
  • $645.44
  • $677.71

Question 3.3. Which of the following statements is CORRECT?

  • It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required.
  • Corporations face fewer regulations than sole proprietorships.
  • One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level.
  • One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.
  • If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

Question 4.4. A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?

  • The annual payments would be larger if the interest rate were lower.
  • If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan.
  • The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower.
  • The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.

Question 5.5. Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership? (Points : 4)

  • Corporations generally find it relatively difficult to raise large amounts of capital.
  • Less of a corporations income is generally subjected to taxes than would be true if the firm were a partnership.
  • Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
  • Corporate investors are exposed to unlimited liability.

Question 6.6. Pace Corp.'s assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to employ a debt ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio?

$158,750

$166,688

$175,022

$183,773

Question 7.7. Branch Corp.'s total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets?

7.22%

7.58%

7.96%

8.36%

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