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You are considering the purchase of ABC Co . You expect that ABC Co . can generate cash flows of $ 3 4 , 0

You are considering the purchase of ABC Co. You expect that ABC Co. can generate cash flows of $34,000,$45,000, and $56,000 over the next three years, respectively. After that time, the business wilt be worthless. An annual rate of return of 9.75 percent is applicable to this potential purchase. What should you be willing to pay today to buy ABC Co.?
Financial Ratios:
a. A firm has total assets of $800,000; long-term debt of $300,000; total equity of $200,000; net fixed assets of $400,000; and sales of $1,000,000. The profit margin is 11 percent. What is the current ratio?
b. A firm has total assets of $65,000,000. There are 100,000 shares of stock outstanding with a market price of $13.00 a share. The firm has a profit margin of 13 percent and a total asset turnover of 2.25. What is the price-earnings ratio?
NEED HELP WITH 7 and 8
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