FINC 3412
Summer I 2011
Raegan
Quiz 5
What is the present value of the following stream of cash flows? Use i = 8.25%
Year
CF
1
$500
2
$500
3
$500
4
$500
5
$600
6
$600
7
$600
8
$700
9
$700
10
$700
$2,563.25
$1,589.36
$3,798.96
$1,111.11
What is the future
FINC 3412
Summer I 2011
Raegan
Cash Budget
For Farrell Industries ($ in thousands)
We can now construct the cash budget for Farrell Industries based on the cash
receipt and cash disbursement schedules developed earlier and the following
additional informa
FINC 3412
Summer I 2011
Raegan
Quiz 6
Refer to problem P2-10 of your book. The quick ratio of the Access Corporation is
1.04
0.38
0.58
The firm's managers use ratios to _.
generate an overall picture of the company's financial health
monitor the firms' pe
FINC 3412
Summer I 2011
Raegan
Quiz 1
For the mortgage loan in question 3, how much would you save in interest payments
over the 30-year period, if you were able to negotiate an interest of 5%?
You would save approximately $10,000
You would save approxima
FINC 3412
Summer I 2011
Raegan
Quiz 7
Refer to problem P2-10 of your book. The ROA of the Access Corporation is
11.3%
4.4%
18.6%
Assume you just started a new business and you are asking your suppliers for credit on
purchases above $10,000. Which of the f
FINC 3412
Summer I 2011
Raegan
Quiz 3
The effective annual rate (EAR) is:
The annual rate to be used in continuous compounding situations.
The annual rate of interest in affect during the current year.
The annual rate of interest actually paid or earned.
FINC 3412
Summer I 2011
Raegan
External Funds Required (EFR)
The estimated amount of external financing that a firm will require in the future:
EFR for Zinsmeister is $8,111,000. In pro forma balance sheet, external financing
declined by $6.7 million. Why
FINC 3412
Summer I 2011
Raegan
Quiz 2
Calculate the effective annual rate (EAR) associated with a 6 APR when interest
compounds monthly.
an infinite rate
6.168%
6.136%
6.090%
6.183%
Calculate the effective annual rate (EAR) associated with a 6 APR when in
FINC 3412
Summer I 2011
Raegan
Schedule of Projected Cash Receipts
For Farrell Industries ($ in thousands)
Next consider the cash disbursements projections:
Purchases: The firms purchases average 70% of sales. Of this, Farrell pays 20% in
cash, 60% in the
FINC 3412
Summer I 2011
Raegan
Quiz 4
You are prepared to make monthly payments of $120, beginning at the end of this
month, into an account that pays 12 percent interest compounded monthly. How many
payments will you have made when your account balance r
FINC 3412
Summer I 2011
Raegan
Quiz 8
Use the Income Statement and Balance sheet for the Buzz Coffee Shops, Inc.
Corporation in Problem P2-9 of your book. The net profit margin for the Buzz Coffee
Shops Inc. is
25.6 percent
20.85 percent
36 percent
15.25