Reference no: EM132413240
Assignment - Finance Questions
1. The Current ratio is calculated Current Assets/Current liabilities, what does it measure?
2. What type of ratio is Debt/EBITDA?
3. When the inventory turnover ratio (COGS/inventory) is high, what does that tell you about the Company's inventory?
4. Name three types of Loans?
5. What is the name of this ratio? EV/EBITDA?
6. What is compounding?
7. What does EBITDA stand for and what is it?
8. If the interest coverage ratio (EBIT/Interest) is below 1, what does that tell you about the Company?
9. Name two Solvency ratios.
10. Name three types of ratio categories (excluding Solvency).
11. What does the Return on Assets ratio (Net Income/Assets) tell you about the Company?
12. What is simple interest?
13. What is the percentage of sales method used for?
14. What is a amortized loan?
15. What is another name for the face value of a bond?
16. The dividend payout ratio is the opposite of what ratio?
17. Name three types of bonds.
18. Name four types of risk when investing in a bond.
19. What is Covenant used for?
20. What is default risk?
21. Why do we not include inventory when calculating the quick ratio? (Current Assets-Inventory/Current Liabilities).
22. What type of ratio is Earnings per share?
23. The account receivable turnover ratio (Sales/Accounts Receivable) measures what for a Company?
24. What is Capital Spending (CAPEX)?
25. What is a Coupon on a bond?
26. A Company had a net profit of $50,000 in 2018. If the Company pays a dividend of $2 a share to its 10,000 shareholders, what is the retention ratio? What is the earnings per share?
27. What is YTM?
28. The Company had retained earnings of $1.5MM last year. The Company gave a dividend of $3 a share to its 500,000 shareholders. What is the EPS? What is the retention ratio and the payout ratio?
29. A Company has a dividend of $2.00 per share and expects to grow it by 3% every year for 5 years. What is the dividend in five years? If the stock is currently trading at $25, what should it be trading at in 5 years?
30. If you deposit $1000 every six monthd at 6%, what will you at the end of 3 years? 5 years?
YOU MUST SHOW ALL CALCUATIONS OR NO CREDIT
1. The Kean Corporation has sales of $100,000, net income of $50,000 and depreciation of $15,000and amortization of $10,000. What is EBITDA?
2. Your company is considering an investment project that will produce operating cash flow for three years of $500 and an interest rate of 8%? What is the PV?
3. Suppose you locate a 3 year investment that pays 12% per year. If you invest $300, how much will you have at the end of two years?
4. What is the present value of 150,000 to be paid in three years at 6%?
5. The Kean Corporation has just paid a dividend of $3 per share. The dividend grows at a steady rate of 8% per year. What will be the dividend in five years?
6. Investment X offers to pay you $5,200 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent?
7. You think you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 8 percent interest. You currently have $7,000 in the account. How much will you have in three years? In four years?
8. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next year, and $800 at the end of the fourth year. You can earn 12 percent on very similar investments. What is the most you should pay for this one?
9. A bank is offering 12 percent compounded quarterly. If you put $100 in an account, how much will you have at the end of one year? What's the EAR? How much will you have at the end of two years?
10. You estimate that you will need about $80,000 to send your child to college in eight years. You have about $35,000 now. If you can earn 20 percent per year, will you make it?
11. Since your salary grows at 3 percent per year and you currently make $50,000, your salary in 3 years will be?
12. A employee has a 401k in which they deposit 6% a year of their $30,000 salary. If the return on the 401k per year is 12%, how much would the employee have in 5 years?
13. The car you plan to buy cost $45,000. If you can get a loan at 5% for 5 years, what is your car payment.
15. A contract gives a $375,000 and the end of the 3rd year. What is the current value a 8%? 5%? & 12?