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you need to edit, it's safer to stay in Protected View. Enable Editing 3. A student is planning to make a 1,000 mile trip. Her

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you need to edit, it's safer to stay in Protected View. Enable Editing 3. A student is planning to make a 1,000 mile trip. Her car gets 25 miles to the gallon. Gasoline prices are $1.80 per gallon. She expects food and board will cost $110 per day. The trip will take two days. She has budgeted $280 for the trip How many gallons of gasoline will she need? 5 points How much money will she need to make the trip? 5 points What percent of the total cost was due to transportation? 5 points Did she budget enough money for the trip? Explain. 5 points 4. Use the following financial information to answer the questions that follow: Deere Caterpillar Revenue $36 Billion $55 Billion Net Income $3 Billion $3.7 Billion Total Assets $61 Billion $85 Billion Total Debt $52 Billion $70 Billion Dividend per share $2.40 $3.08 Earnings per share $6.00 $5.86 Compare Deere and Caterpillar's asset use efficiency and financial leverage. (Looking for ratios.) 20 points Discuss (using the info in the table) whether a larger size, as measured by total assets, leads to a higher retention ratio. (Remember numbers) 10 points Determine Deere's retained earnings in billions. (This should be a dollar amount. Remember earnings are the same as net income, but retained earnings are after paying dividends.) 10 points 5. Ten years ago, a couple bought a house for $250,000 with 10% down and a 25 year mortgage with an interest rate of 6.2% a year. What were the monthly payments? 5 points They refinance the mortgage today. They are using a 15 year mortgage with an annual rate of 3%. The bank charges an upfront cost of $5,000 for the refinancing which is added to the amount owed on the original loan. How much do they owe on the original loan before adding the upfront cost (balance)? 5 points What will be the amount of the new monthly payment? 5 points Why the difference in the two amounts? 5 points

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