Reference no: EM132974647
a. Lee Sun's has sales of $3,600, total assets of $3,300, and a profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity?
b. A firm has total debt of $1,380 and a debt-equity ratio of .23. What is the value of the total assets?
c. You have just deposited $6,000 into an account that promises to pay you an annual interest rate of 5.5 percent each year for the next 6 years. You will leave the money invested in the account and 10 years from today, you need to have $12,800 in the account. What annual interest rate must you earn over the last 4 years to accomplish this goal?
d. Bob bought some land costing $15,940. Today, that same land is valued at $45,917. How long has Bob owned this land if the price of land has been increasing at 6 percent per year?
e. Tomas earned $89 in interest on his savings account last year and has decided to leave the $89 in his account this coming year so it will earn interest. This process of earning interest on prior interest earnings is called:
f. Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 six years from now. Which one of the following terms refers to the $5,318?
l. The interest rate used to compute the present value of a future cash flow is called the:
m. By definition, a bank that pays simple interest on a savings account will pay interest:
n. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.
o. Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing?