1) I have an investment that will pay me $20 every quarter for the next 5 years. Assuming that I want a 12% return compounded quarterly, what price should I pay for the investment?

2) If the price of the European euro is $1.6365 (quoted at $1.6365 / euros), how many euros are necessary to purchase $1.00?

3) You require $20,000 in 8 years for a down payment on a house. You are planning on depositing equal annual payments in an account earning 4% at the end of each year for the next 8 years. What is the dollar value of the payments required to reach your goal of $20,000?

4) For each of the following ratios indicate whether the firm’s ratios are good or poor as compared to industry averages by placing a check in the correct column.

                                                                      Company Industry   Good    Poor

Inventory turnover                                                  2.5      4                

Average collection period of receivables             8days    16 days     

Quick ratio                                                              1.1      3                

Return on assets                                                  6.1%      4.0%    

Debt Ratio                                                           75%      50%