Question 1

Verizon LLC has $600,000 in debt outstanding, and it pays an annual interest of 7.0% on the debt. Annual Sales = 2,000,000; Tax Rate = 30%. Net profit margin = 5%. What's the firm's time interest earn?

a. 4.1 b. 4.2 c. 4.3 d. 4.4 e. 4.5

Question 2

John Houston now has $1000. How much would he have after 8 years if he leaves it invested at 6.25% with annual compounding?

	1.	$1,224
	2.	$1,324
	3.	$1,424
	4.	$1,524
	5.	$1,624