Common equity on firm balance sheet

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Reference no: EM131958051

1. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

2. You wrote 5 call option contracts on XYZ stock with a strike price of $40 and an option premium of $2.68. What is your net gain or loss on this investment if the price of XYZ is $37.26 on the option expiration date?

3. Precious Metal Mining has $19 million in sales, its ROE is 14%, and its total assets turnover is 4x. Common equity on the firm’s balance sheet is 60% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps.

Reference no: EM131958051

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