Lester's Fried Chick'n purchased its building 11 years ago at a cost of $139,000. The building is
currently valued at $179,000. The firm has other fixed assets that cost $66,000 and are currently
valu
97
The Sarbanes-Oxley Act of 2002 has:
reduced the annual compliance costs of all publicly traded firms in the U.S.
decreased the number of U.S. firms going public on foreign exchanges.
made officers
A firm has total debt of $1,460 and a debt-equity ratio of 0.31. What is the value of the total
assets?
$1,912.60
$3,100.00
$4,526.00
$6,169.68
$4,709.68
$1,460 / Total equity = 0.31; Total equity = $
Peterboro Supply has a current accounts receivable balance of $391,648. Credit sales for the year
just ended were $5,338,411. How long did it take on average for credit customers to pay off their
acco
Valentino's maintains a constant debt-equity ratio of 0.45. The firm had net income of $11,800
for the year and paid $6,500 in dividends. The firm has total assets of $92,000. What is the
sustainable
Daniel's Market has sales of $36,600, costs of $28,400, depreciation expense of $3,100, and
interest expense of $1,500. If the tax rate is 34 percent, what is the operating cash flow, OCF?
$6,466
$4,8
The Inside Door has total debt of $78,600, total equity of $214,000, and a return on equity of
14.5 percent. What is the return on assets?
21.45 percent
39.48 percent
10.61 percent
9.14 percent
34.61
New Steel Products has total assets of $991,000, a total asset turnover rate of 1.1, a debt-equity
ratio of 0.6, and a return on equity of 8.7 percent. What is the firm's net income?
$58,303.33
$77,23
102
Ivan's, Inc. paid $464 in dividends and $577 in interest this past year. Common stock increased
by $187 and retained earnings decreased by $113. What is the net income for the year?
$464
$351
$577
95
The daily financial operations of a firm are primarily controlled by managing the:
long-term liabilities.
capital structure.
total debt level.
working capital.
capital budget.
Last year, The Pizza Joint added $4,100 to retained earnings from sales of $93,600. The company
had costs of $74,400, dividends of $2,500, and interest paid of $1,400. The tax rate was 34
percent. Wha
101
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell
her business. The company built a building at a cost of $1,260,000 that is currently appraised at
$1,4
Today is your 21st birthday and you just decided to start saving money so you can retire early.
Thus, you are going to save $500 a month starting one month from now. You plan to retire as
soon as you
Pete's Warehouse has net working capital of $2,400, total assets of $19,300, and net fixed assets
of $10,200. What is the value of the current liabilities?
-$2,900
$2,900
-$6,700
$11,500
$6,700
Curren
Jamie earned $180 in interest on her savings account last year. She has decided to leave the $180
in her account so that she can earn interest on the $180 this year. The interest Jamie earns this
year
Lester had $6,270 in his savings account at the beginning of this year. This amount includes both
the $6,000 he originally invested at the beginning of last year plus the $270 he earned in interest
la
Which one of the following is the correct formula for the future value of $500 invested today at 7
percent interest for 8 years?
FV = $500/(0.07 8)
FV = $500/[(1 + 0.07) 8]
FV = $500 (1 + 0.08)7
FV =
Which of the following will decrease the future value of a lump sum investment made today
assuming that all interest is reinvested? Assume the interest rate is a positive value.
I. Increase in the int
Today, you deposit $2,400 in a bank account that pays 4 percent simple interest. How much
interest will you earn over the next 5 years?
$492.16
$101.15
$519.97
$480.00
$96.00
Interest = $2,400 0.04 5
What is the future value of $4,900 invested for 8 years at 7 percent compounded annually?
$8,513.06
$8,520.22
$8,419.11
$8,397.74
$8,511.15
Future value = $4,900 (1.07)8 = $8,419.11
You just won $25,000 and deposited your winnings into an account that pays 6.2 percent interest,
compounded annually. How long will you have to wait until your winnings are worth $50,000?
12.29 years
You have been told that you need $21,600 today in order to have $100,000 when you retire 42
years from now. What rate of interest was used in the present value computation? Assume
interest is compound
Three years ago, you invested $3,050.00. Today, it is worth $3,800.00. What rate of interest did
you earn?
4.07 percent
7.60 percent
5.07 percent
0.63 percent
3.80 percent
FV = $3,800.00 = $3,050.00 (
Which one of the following is an ordinary annuity, but not a perpetuity?
$15 paid at the end of each monthly period for an infinite period of time
$75 paid at the beginning of each month period for 50
Kristina started setting aside funds 3 years ago to save for a down payment on a house. She has
saved $900 each quarter and earned an average rate of return of 4.8 percent. How much money
does she cur
Kris will receive $800 a month for the next 5 years from an insurance settlement. The interest
rate is 4 percent, compounded monthly, for the first 2 years and 5 percent, compounded monthly,
for the f
A credit card has a stated interest rate of 13.9 percent. What is the APR if interest is compounded
monthly?
13.09 percent
14.82 percent
14.56 percent
13.46 percent
13.90 percent
The stated rate is th
The Gift House offers credit to its customers and charges interest of 1.1 percent per month. What
is the annual percentage rate?
14.24 percent
13.20 percent
13.39 percent
14.03 percent
13.84 percent
A
A new financial services company just opened in your town. To attract customers, it is offering a
"9-10" loan special. The company will lend $9 today in exchange for a payment of $10 one year
from tod