You want to go to Europe 5 years from now, and you can save $3.100 per year, beginning one year from tediry. You blan to deposit the fundi in a mutual fund that you think will retutn 8.5% per year, Under these conditions, how much would you have just atter you make the 5 hh deport, 5 years from now? a. $16.369 b. $19287 c. $20.251 d. 521.264 e. $22.927 Question 9 Last year Radical & Crazy Corp had $305,000 of assets (which is equal to its total invested capital), $403,000 of sales, 528,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to 5252,500 . The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE? Which of the following is a primary market transaction? A. You sell 200 thares of 10M stock on the NYse throver your braker. C. IAM issues 2,000,000 shares of new stock and setis them to the public through an inwestrent bankifi. D. One financial institution buys 200,000 shaces of laM stock from another institution. An irvestrent banker arranges the wanwativn. E. IBM sells 2.000,000 shares of treasury stock to its einployees when they exercise options that were gramed in priot yeark. Question 13 Which of the following is CORRECT? a. The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets