Question
Please find the answers with full explanations. 1. If a firm has an aftertax profit margin of 6%, an asset turnover of 3.0 times and
Please find the answers with full explanations.
1. If a firm has an aftertax profit margin of 6%, an asset turnover of 3.0 times and no debt, what will be its return on return on equity?
2. Your cousin will sell you his coffee shop for $30,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $75,000 at the end of the last month. What would your equal monthly payments be?
a. $4,947.01
b. $5,659.13
c. $57.329.87
d. $7,045.51
e. $4,241.44
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