Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You deposited $2,000 in an account that earns 6.5% annual interest. You want to use your financial calculator to find out how many years it
You deposited $2,000 in an account that earns 6.5% annual interest. You want to use your financial calculator to find out how many years it takes for the investment to grow to $4,500. Which one shows the correct input for the calculator? O PV = -2000;1 - 0.065; PMT = 0; FV = 4500 O PV = 2000; 1 = 0.065; PMT = 0; FV = 4500 O PV = -2000; 1 = 6.5; PMT= 0; FV = 4500 O PV = 2000; 1 = 6.5; PMT = 0; FV = 4500 Question 17 5 pts XYZ has a debt-equity ratio of 2/5, total asset turnover ratio of 2, and net-income relative to sales of 7.5%. The board is unhappy with the current ROE and thinks it can be doubled. The new operating plan put forth implies profit-margin (NI/Sales) of 15.75%, the same total assets turnover, and a new debt-equity ratio. What is the new debt-equity ratio that when combined with the new operating plan doubles the ROE of XYZ? 0 2/3 or (0.6667) O 3/4 or (0.75) O 1/1 or (0.5) O 1/3 or (0.3333) Question 18 5 pts You are offered a security that pays $1,000 each year for 11 years with the first payment made 5 years from today. How much are you willing to pay today for the security if your required rate of return is 9% nominal compounded annually? (to get to the final answer, intermediate steps are rounded up to 4 decimals and the final answer is rounded up to 2 decimal places) Hint: Solve for PV at t = 0, note that the annuity has a late start so be careful of the timing as to where the PV lands) 0 $4,820.97 0 $6,805.19 O $4,485.92 O $7,417.66
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started