Firm has no current liabilities

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1. A firm has no current liabilities. If the long term debt to equity ratio is 1, then its total debt ratio is

2. How much more is a perpetuity of $7,000 worth than an annuity of the same amount for 10 years? Assume a 5% discount rate and cash flows at the end of period.

3. You are saving to buy a house and have $50,000. How long will it take you to save up for the $200,000 downpayment if you save 10,000 per year? Assume an interest rate is 5%.

4. A firm has sales of $5 million, average total assets of $1.6 million, average fixed assets of $1 million, and average current liabilities of $300,000. Given this information, answer the following about the firm's efficiency. Calculate NWC for the company.

Reference no: EM132044555

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