You have borrowed $70,000 to buy a rental property. You plan to make monthly payments over a 15 year period. The bank has offered you a 9% interest rate compounded monthly. Calculate the principal paid to the bank in a two month loan. Assume end-of-period payments.

A. $184.01

B. $186.38

C. $188.46

D. $190.64

E. $192.73

Assume that Home Depot's annual dividend is $ 3.00 per share. The dividend would most likely be paid as:

A. $1.50 twice per year

B. $3 once per year

C. Whenever the company had extra cash

D. $0.75 four times per year

Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $8,750,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firm's net income?

A. $255,223

B. $4,731,000

C. $2,616,000

D. $7,775,000

Marshall Networks, Inc. has a total asset turnover of 2.5 and a net profit margin of 3.5%. The firm has a return on equity of 17.5%. Calculate Marshall's debt ratio.

A. 30%

B. 40%

C. 50%

D. 60%

You buy a race horse, which has a winning streak for four years, bringing in $500,000 per year, and then it dies of a heart attack. If you paid $1,518,675 for the horse four years ago, what was your annual return over this four-year period?

A. 8%

B. 33%

C. 18%

D. 12%

Harry just bought a new four-wheel-drive Jeep Cherokee for his lumber business. The price of the vehicle was $35,000, of which he made a $5,000 down payment and took out an amortized loan for the rest.

Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ration of 2.6. What is Smith's quick or acid test ratio?

A. 1.69

B. 0.54

C. 0.74

D. 1.35