PLEASE ANSWER ALL QUESTIONS

1. Suppose the equity multiplier is 1. What is the relationship between the return on assets ratio and the return on equity ratio? 2. Does the calculation of a horizon value assume that the growth rate is: equal to zero, a constant value, or individual values for a finite number of years? 3. Suppose you have computed NPV and will solve for the IRR using Goal Seek in Excel. What value must you set NPV equal to in order to calculate the IRR? 4. What financial variable is generated by dividing the return on equity ratio by the return on assets ratio? 5. The intrinsic value of equity subtracts all debt and preferred stock from the value of operations. What is added to the value of operations? 6. Investors believe a company's Economic Value Added will remain above average. Will the market price to book value ratio, and its Market Value Added both increase, both decrease, or be unaffected? 7. A company uses both short-term debt and long-term debt as permanent sources of financing. Which one(s) should be included in the weighted average cost of capital