only thing I need is how to work out the problems for the math base ones. and for the non math questions in 1 or 2 sentence why it is that answer?

7. The King Carpet Company has $3,000,000 in cash and a total of $12,000,000 in current assets. The firm's current liabilities equal $6,000,000 such that the firm's current ratio equals 2. The company's managers want to reduce the firm's cash holdings down to $1,000,000 by paying $500,000 in cash to expand the firm's truck fleet and using $1,500,000 in cash to retire a short-term note. If the carry this plan through, what will be the firm's NEW current ratio? a.2.00 b. 2.22 c. 2.42 d. 1.52 Solution: Answer is B 2.22 9. Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1 pays 4.99% APR compounded daily and the second certificate of deposit, CD #2 pays 5.00% APR compounded monthly. Based on the effective annual rate (EAR) which CD would you suggest for her [keep two digits after decimals]? a. CD #1 b. CD #2 c. Either one is best d. They are not comparable due to different rates Solution: Answer is C Either one is best 11. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. a. $323,839 b.$162,000 c.$270,000 d.$1,500,000 Solution: Answer is A $323,839 15. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. a. $46,933 b.$68,960 c.$68,690 d.$550,000 Solution: Answer is B $68,960 17. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. a. $58,666 b. $144,866 c. $50,000 d. $73,466 Solution: Answer is A $58,666 19. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. How much (FV of all savings) will you have at the end of 10 years? a. $1,100,301 b. $1,169,261 c. $1,219,261 d. $1,227,927 Solution: Answer is D $1,227,927 23. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Calculate the risk (standard deviation) of stock A. a. 10.00% b. 3.10% c. 15.00% d. 0.10% Solution: Answer is B 3.10% 25. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Calculate the risk (standard deviation) of stock B. a. 0.83% b. 8.33% c. 9.11% d. 9.40% Solution: Answer is C 9.11% 30. Which of the following statements is true? a. As a general rule, management would want to reduce the firm's average collection period. b. As a general rule, management would want to reduce the firm's accounts receivable turnover ratio. c. As a general rule, management would want to increase the firm's average collection period. d. As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable. Solution: Answer is A. As a general rule, management would want to reduce the firm's average collection period. 34. What is a series of equal payments for an infinite period of time called? a. A perpetuity b. A cash cow c. An annuity d. An axiom Solution: Answer is A A perpetuity 35. The present value of a perpetuity decreases when the ________ decreases. a. Number of investment periods b. Annual discount rate c. Perpetuity payment d. Both annual discount rate and perpetuity payment Solution: Answer is C Perpetuity payment 37. A decrease in ________ will increase gross profit margin. a. Cost of goods sold b. Depreciation expense c. Interest expense d. Both cost of goods sold and depreciation expense Solution: Answer is A. Cost of goods sold 7. The King Carpet Company has $3,000,000 in cash and a total of $12,000,000 in current assets. The firm's current liabilities equal $6,000,000 such that the firm's current ratio equals 2. The company's managers want to reduce the firm's cash holdings down to $1,000,000 by paying $500,000 in cash to expand the firm's truck fleet and using $1,500,000 in cash to retire a short-term note. If the carry this plan through, what will be the firm's NEW current ratio? a.2.00 b. 2.22 c. 2.42 d. 1.52 Solution: Answer is B 2.22 9. Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1 pays 4.99% APR compounded daily and the second certificate of deposit, CD #2 pays 5.00% APR compounded monthly. Based on the effective annual rate (EAR) which CD would you suggest for her [keep two digits after decimals]? a. CD #1 b. CD #2 c. Either one is best d. They are not comparable due to different rates Solution: Answer is C Either one is best 11. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is the FV of your current savings ($150,000) at the end of 10 years? a. $323,839 b.$162,000 c.$270,000 d.$1,500,000 Solution: Answer is A $323,839 15. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is the FV of five installments you made during the first five years at the end of 10 years? a. $46,933 b.$68,960 c.$68,690 d.$550,000 Solution: Answer is B $68,960 17. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is FV of five installments you made at the latter five years? a. $58,666 b. $144,866 c. $50,000 d. $73,466 Solution: Answer is A $58,666 19. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. How much (FV of all savings) will you have at the end of 10 years? a. $1,100,301 b. $1,169,261 c. $1,219,261 d. $1,227,927 Solution: Answer is D $1,227,927 23. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Calculate the risk (standard deviation) of stock A. a. 10.00% b. 3.10% c. 15.00% d. 0.10% Solution: Answer is B 3.10% 25. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Calculate the risk (standard deviation) of stock B. a. 0.83% b. 8.33% c. 9.11% d. 9.40% Solution: Answer is C 9.11% 30. Which of the following statements is true? a. As a general rule, management would want to reduce the firm's average collection period. b. As a general rule, management would want to reduce the firm's accounts receivable turnover ratio. c. As a general rule, management would want to increase the firm's average collection period. d. As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable. Solution: Answer is A. As a general rule, management would want to reduce the firm's average collection period. 34. What is a series of equal payments for an infinite period of time called? a. A perpetuity b. A cash cow c. An annuity d. An axiom Solution: Answer is A A perpetuity 35. The present value of a perpetuity decreases when the ________ decreases. a. Number of investment periods b. Annual discount rate c. Perpetuity payment d. Both annual discount rate and perpetuity payment Solution: Answer is C Perpetuity payment 37. A decrease in ________ will increase gross profit margin. a. Cost of goods sold b. Depreciation expense c. Interest expense d. Both cost of goods sold and depreciation expense Solution: Answer is A. Cost of goods sold 7. The King Carpet Company has $3,000,000 in cash and a total of $12,000,000 in current assets. The firm's current liabilities equal $6,000,000 such that the firm's current ratio equals 2. The company's managers want to reduce the firm's cash holdings down to $1,000,000 by paying $500,000 in cash to expand the firm's truck fleet and using $1,500,000 in cash to retire a short-term note. If the carry this plan through, what will be the firm's NEW current ratio? a.2.00 b. 2.22 c. 2.42 d. 1.52 Solution: Answer is B 2.22 9. Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1 pays 4.99% APR compounded daily and the second certificate of deposit, CD #2 pays 5.00% APR compounded monthly. Based on the effective annual rate (EAR) which CD would you suggest for her [keep two digits after decimals]? a. CD #1 b. CD #2 c. Either one is best d. They are not comparable due to different rates Solution: Answer is C Either one is best 11. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is the FV of your current savings ($150,000) at the end of 10 years? a. $323,839 b.$162,000 c.$270,000 d.$1,500,000 Solution: Answer is A $323,839 15. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is the FV of five installments you made during the first five years at the end of 10 years? a. $46,933 b.$68,960 c.$68,690 d.$550,000 Solution: Answer is B $68,960 17. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. What is FV of five installments you made at the latter five years? a. $58,666 b. $144,866 c. $50,000 d. $73,466 Solution: Answer is A $58,666 19. You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to deposit $8,000 per year into your savings account at the end of each of the next five years, and then $10,000 per year at the end of each year for the final five years until you retire. Assume your savings account returns 8% compounded annually, and your investment in stocks will return 12% compounded annually. How much (FV of all savings) will you have at the end of 10 years? a. $1,100,301 b. $1,169,261 c. $1,219,261 d. $1,227,927 Solution: Answer is D $1,227,927 23. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Calculate the risk (standard deviation) of stock A. Common Stock A Probability 0.30 0.40 0.30 Return 11% 15% 19% a. 10.00% b. 3.10% c. 15.00% d. 0.10% Solution: Answer is B 3.10% 25. Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows: Common Stock B Probability 0.20 0.30 0.30 0.20 Return -5% 6% 14% 22% Calculate the risk (standard deviation) of stock B. a. 0.83% b. 8.33% c. 9.11% d. 9.40% Solution: Answer is C 9.11% 30. Which of the following statements is true? a. As a general rule, management would want to reduce the firm's average collection period. b. As a general rule, management would want to reduce the firm's accounts receivable turnover ratio. c. As a general rule, management would want to increase the firm's average collection period. d. As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable. Solution: Answer is A. As a general rule, management would want to reduce the firm's average collection period. 34. What is a series of equal payments for an infinite period of time called? a. A perpetuity b. A cash cow c. An annuity d. An axiom Solution: Answer is A A perpetuity 35. The present value of a perpetuity decreases when the ________ decreases. a. Number of investment periods b. Annual discount rate c. Perpetuity payment d. Both annual discount rate and perpetuity payment Solution: Answer is C Perpetuity payment 37. A decrease in ________ will increase gross profit margin. a. Cost of goods sold b. Depreciation expense c. Interest expense d. Both cost of goods sold and depreciation expense Solution: Answer is A. Cost of goods sold