Question 10 What is the Price to Earnings or P/E ratio if the Stock Price is $100,000 for this company and there are 1,000 shares? Income Statement Revenue 10,000 Expenses (5,000) Net Income 5,000 Balance Sheet Cash & Accounts Receivable 10,000 Inventory 15,000 Current Assets 25,000 Long Term Assets 75,000 Total Assets 100,000 Accounts Payable 5,000 Current Liabilities 5,000 Long TermDebt 75,000 Total Liabilities 80,000 Capital 20,000 Ol. Per Share: Stock Price /Shares $100,000/1,000= $100 Per share. Net Income/Shares $5,000/1,000= $5 Per share. P/E ratio is $100/$5 = 20. Ol. Per Share: Capital/Shares $20,000/1,000= $20 Per share. Ol. Per Share: (Stock Price/Net Income) *Shares ($100,000/5,000) *1,000= $20,000. ON.Per Share: Stock Price /Shares $100,000/1,000= $100 Per share. Capital/Shares $20,000/1,000= $20 Per share. P/E ratio is $100/$20 = 5.Question 3 What's the Debt ratio here and is it high, normal or low? Income Mam-n! Revenue .000 mm 8 Expenses 15,000! Net Income 5 5& Balance Shut Cult 8: Amounts Receiwble $ 10,000 Inventory 3 15g Current Assets 5 25,000 Long Term Asset 5 H.000 Total assets 3 1.00.000 Amount: Payable $ 5M Current Liabilities 5 5M Long TennDeht S 75E Total Liabilities 5 80,000 Capital 5 20:000 0" Total Debt] Total Liabilities: $75K/$80K = 93.75, a high number. O\"' Total Debt] Total Capital: $75KI$20K = 3.75, a low number. 0\""Total Debt! Total Assets = $75K/$100K = 75%, it's low. 0\"Total Debt] Total Assets = $75K/$100K = 75%, it's high. Question 4 10 points Save Answer Explain the process in the image below: Deposits Loans Savers Banks Borrowers Withdrawals Repayment of loans Interest payments Interest payments Banks Save so money SUPPLY=SAVINGS, Firms obtain Debt so money DEMAND = DEBT, and Households provide finance in the middle so are FINANCIAL INTERMEDIARIES where Houesholds=BORROWING PROCESS. ". Firms Save so money SUPPLY=SAVINGS, Households obtain Debt so money DEMAND = DEBT, and Banks provide finance in the middle so are FINANCIAL INTERMEDIARIES where BANKS=BORROWING PROCESS. ". Households Save so money SUPPLY=SAVINGS, Firms obtain Debt so money DEMAND = DEBT, and Banks provide finance in the middle so are FINANCIAL INTERMEDIARIES where BANKS=BORROWING PROCESS. OW. Households Save so money SUPPLY=SAVINGS, Banks obtain Debt so money DEMAND = DEBT, and Firms provide finance in the middle so are FINANCIAL INTERMEDIARIES where BANKS=BORROWING PROCESS.Question 7 What is shown on this table? HISTORICAL YIELDS OR RETURNS (Vary with Risk) CD or BANK DEPOSITS 10 Corporate bonds Interest Rate 6morn CO 10-year U.S. Treasury bonds 2 0+ 2001 2010 2009 2011 2012 2013 6861 2000 2002 2004 2005 2006 2007 2008 2:400 7 -24,030 $309 009 7 -20 000 $280,000 2:800 1,800 $260,000- 15,000 1.800 14,000 $240.000 1,450- SAP 500- $200,000 - -10,000 $180.000 8,000 $160.000- 6,000 8 88 88 $140,000 -4,800 $120.000 -2.900 $100.000+ Year Year Examples of yields or returns that are at higher levels with the level or risk or term. ". Examples of volatility of returns that are at higher levels with the level or risk or term. ." Examples of investments that affect money supply or money demand. ON. Examples of yields or returns that are at lower levels with the level or risk or term.Question 8 Use the Rule of 72 and answer how long it will take an amount to DOUBLE in value at 2% and is that a good rate? Q 2% : 721' 2 = 36 Years! Poor banking rate. 0 1%: 72! 1 = 72 Years. Poor banking rate. 0 7.2%: 72W\") = 7.2 Years. (High Earning Stock Rate) 0 14%: 1*1Di7'2 = 7.2 Years. (Very High Earning Risky Rate)