Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Given following information for Tandoori Grill Restaurant, compute the total asset turnover and return on equity ratios: Net Profit Margin 8%   Return on Assets 15%    Debt Ratio 30%.

2) B.J. Industries has the present ratio of 2.5, with $2.5 million in present assets.  Due to sales growth, company wishes to expand accounts receivable and inventories by taking on extra short-term debt.  If B.J. Industries wants to maintain a minimum present ratio of 2.0, what is the maximum extra short-term funding it can borrow? 

3) You are comparing two investment options.  Cost to invest in either option is the same today.  Both options give you with $20,000 of income.  Option A pays five annual payments of $4,000 each. Option B pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each.  Which one of the following statements is correct given these two investment options?

4) Mr. Moore would be 35 years at the end of the month and he wants to retire in 25 years.  He plans to invest in a mutual fund earning 7.5 percent annual return compounded monthly and has a $1.5 million retirement fund at age 60.  How much shoulkd be deposited at the end of each month to achieve his goal?   

5) You are a manager of the annuity settlement company.  Jim Patton just won a  state lottery which promises to pay him $1,000 per year for 20 years, starting from today, and $2,000 per year for years 21-45, given a 9% discount rate.  Your company wishes to purchase the proceeds from the lottery from Jim.  What is the most that your company could offer?

6) Jean Cleveland currently has $5,750 in a money market account paying 5.65 percent compounded semi-annually.  She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse.  She estimates that he will need $15,000 in 5 years.  How much should she invest in the money market account semi-annually over the next 5 years to achieve this target?

7) You are the beneficiary of a life insurance policy.  The insurance company informs you that you have two options for receiving the insurance proceeds.  You can receive a lump sum amount of $50,000 today, or receive payments of $641 a month for 10 years.  You can earn 6.5% on your money.  Which option should you take and why?

8) BioMax Inc. offers 8 percent coupon bond which has a $1,000 par value, semi-annual coupon payments and 20 years of its original 25 years left to maturity.  Which of the following statements is true if the market return on similar bonds is 10%?

9) Aquaman stock has exhibited the standard deviation in returns of 0.7, while Green Lantern stock has exhibited the standard deviation of 0.8.  Correlation coefficient between the stock returns is 0.1.  What is a standard deviation of the portfolio composed of 70% Aquaman and 30% Green Lantern?

10) The stocks of Microsoft and Apple have a correlation coefficient of 0.6.  Variance of Microsoft stock is 0.4 and variance of Apple stock is 0.3.  What is the covariance between two stocks?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91876

Have any Question? 


Related Questions in Basic Finance

Below is a grammar for expressions involving operator and

Below is a grammar for expressions involving operator + and integer or oating-point operands. Floating-point numbers are distinguished by having a decimal point. a) Give an SDD to determine the type of each term T and ex ...

Obtain financial statements for microsoft for the last five

Obtain financial statements for Microsoft for the last five years either from its Web site (http://www.microsoft.com) or from the SEC's online EDGAR site (http://www.sec.gov/edgar/searchedgar/webusers.htm). First, look a ...

All of us have a tendency to categorize people into

All of us have a tendency to categorize people into stereotypic groups. If you look around at the students on campus, you will see science geeks, artsy freaks, jocks, wallflowers, cheerleaders, and party animals, just to ...

1 selecting a bank steve just received his first paycheck

1. Selecting a Bank. Steve just received his first paycheck and wants to open a checking account. There are five banks in his hometown. What factors should Steve consider when choosing a bank? 2. Influence of Interest Ra ...

In formulating your key concept exercise consider the

In formulating your Key Concept Exercise, consider the following questions: What are the benefits of just-in-time (JIT) techniques? What types of organisations use JIT techniques? Should things change if they are running ...

1 what makes a good theory why are theories so important in

1. What makes a good theory? Why are theories so important in behavioral research? 2. What makes a theory falsifiable? What makes a theory tautological? 3. What is a research hypothesis? Why are research hypotheses, rath ...

The centers for disease control and prevention released a

The Centers for Disease Control and Prevention released a report in 1998 that attributed part of the increase in youth smoking in the 1980s to the use of the cartoon character, Joe Camel, in cigarette advertising. Using ...

Sabrinas just paid an annual dividend of 179 per share this

Sabrina's just paid an annual dividend of $1.79 per share. This dividend is expected to increase by 2.5percent annually. Currently, the firm has a beta of .87 and a stock price of $31 a share. The risk-free rate is 4.5pe ...

1 small savers can usually receive a higher interest rate

1. Small savers can usually receive a higher interest rate from money market mutual funds than from bank savings accounts. So, how are banks able to attract small savers? 2. Financial journalist David Wessel has describe ...

Assume the followingerm 7rf 2expected risk premium on

Assume the following: E(rM) = 7% rF = 2% Expected risk premium on Boeing stock = 7% What is the expected return on Boeing stock? Show your work

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen