III. Calculate the following problems.

$1.$ An asset costs $$210,000$ with a $$30,000$ salvage value at the end of its ten$-$year life. If annual cash inflows are $$30,000,$ calculate the payback period.

$2.$ A company has a profit attributable to ordinary shareholders of $$100,000.$ The number of ordinary shares of $$1$ in issue during the year was $300,000.$ The market value of the company$$s shares at the year$-$end was $$6\mathrm{.}50.$ Calculate the price$/$earnings ratio for this company.

$3.$ Quick ratio is $1\mathrm{.}8$:$1,$ current ratio is $2\mathrm{.}7$:$1$ and current liabilities are $ $60,000.$ Determine value of inventory.

$4.$ If the nominal rate of interest is $10\%$ per annum and there is quarterly compounding, calculate the effective rate of interest.

$5.$ Credit sales of Jump Ltd$.$ for the year is $ $12,00,000$ and debtors at the end of year $ $240,000.$ Assuming $360$ days in a year, calculate the average collection period.

$6.$ Determine stock turnover ratio if$,$ Opening stock is $ $31,000,$ Closing stock is $ $29,000,$ Sales is $$320,000$ and Gross profit ratio is $25\%$ on sales.

$7.$ You purchased some fixed assets six years ago at a cost of $$165,700.$ You have been depreciating these assets using straight$-$line depreciation to a zero book value over $10$ years. Today, you are selling these assets for $$62,500.$ What is the after$-$tax cash flow from this sale if the applicable tax rate is $35$ percent?

$8.$ You are considering a project that will generate sales of $$89,000,$ costs of $$56,000,$ and annual depreciation of $$26,000.$ What is the value of the operating cash flow if the tax rate is $34$ percent?

$9.$ Pete's Garden House has a cost of equity of $15\mathrm{.}6$ percent, an after$-$tax cost of debt of $7\mathrm{.}1$ percent, a debt$-$equity ratio of $0\mathrm{.}45,$ and a tax rate of $35$ percent. What is the firm's weighted average cost of capital?

$10.$ U$.$S$.$ Treasury bills are yielding $4\mathrm{.}6$ percent while the market is returning $14\mathrm{.}8$ percent. What is the expected return on a security that has a beta of $0\mathrm{.}86?$