The ABC Company has a net profit margin of 7.75 percent on sales of $382,846. The company has 17,792 shares of stock outstanding at a market price of $19.1 per share. What is the priceearnings ratio?
a. 11.45
b. 4.56
c. 10.5
d. 3.7
How many years will it take to double your money at 9% compounded semi-annually?
a. 15
b. 4.5
c. 7.85
d. 15.7
You want to have $13,226 in cash to buy a car in 3 years. You expect to earn 14.8% per year on your savings. How much do you need to deposit today if this is the only money you save for this purpose?
a. $8,741.84
b.
$3,456.95
c. $5,796.56
d. $4,500
Suppose an investment offers to triple your money in 14 years. What annual rate of return are you being offered if interest is compounded monthly?
a. 7.87%
b. 0.65%
c. 4%
d. 3%
ABC Company offers a perpetuity which pays annual payments of $13,194. This contract sells for $310,531 today. What is the interest rate?
a. 3.45%
b. 4.25%
c. 2.45%
d. 4.87%
A firm has net working capital of $2,258 and current assets of $7,872. What is the current ratio?
a. 0.4
b. 3.1
c. 6.2
d. 1.4
What is the net present value of the following cash flows? Assume an interest rate of 5.16%.Year
CF
0
-$12,960
1
$5,573
2
$5,045
3
$5,743
a. $14,800
b. $13,456
c. $4,569
d. $1,840
If you put $453 in a savings account at the beginning of each year for 6 years, how much money will be in the account at the end of the 6th year? Assume that the interest rate is 11%.
a. $3,356.5
b. $4,543.78
c. $3,978.82
d. $2,500.35
Jack Miller, an employee of ABC Company was recently promoted and he is now in charge of managing the company's long-term investments. This means, he is in charge of the company's:
a. capital structure decisions.
b. working capital management decisions.
c. cash management decisions.
d. risk management decisions.
e. capital budgeting decisions
Interest paid to a firm's debt-holders is tax-deductible to the paying company.
?
True
?
False
ABC Company earned $657,257 in taxable income for the year. How much tax does the company owe on this income?
a. $145,923.56
b. $223,467.38
c. $450,345
d. $300,658.98
ABC Inc. has sales of $278,589, costs of $131,535, depreciation expense of $23,949, and interest paid of $34,779. The tax rate is 43 percent. How much net income did the firm earn for the period?
a. $40,459.76
b. $60,567.92
c. $34,549
d. $50,345.82
In its most recent financial statements, ABC reported $58,883 million of net income and $794,740 million of retained earnings. The previous retained earnings were 798,446 million.
How much in dividends was paid to shareholders during the year?
a. $61,859
b. $54,359
c. $62,589
d. $45,768
If you receive $392 at the end of each year for the first three years and $744 at the end of each year for the next three years. What is the present value? Assume interest rate is 10%.
a. $8,234.67
b. $2,567.34
c. $2,364.94
d. $4,728.8
ABC, Inc. has total equity of $361,152, long-term debt of $116,400, net working capital of $1,600, and total assets of $781,777. What is the total debt ratio?
a. 0.5380
b. 0.4583
c. 0.2658
d. 0.3456
As the number of years is increased, the:
a. PV increases, FV decreases
b. PV increases, FV increases
c. PV decreases, FV increases
d. PV decreases, FV decreases
Which one of the following transactions occurred in the primary market?
a. Mona gifted 100 shares of Apple stock to her son-in-law on his birthday.
b. Anthony purchased 50 shares of RIM stock from his best friend, Edward.
c. Emma instructs her broker to sell all of her shares in General Electric, Inc.
d. Delta, Inc offered newly issued shares to the general public.
e. The president of J.C. Penny, Inc. sold some of her shares to her daughter on the NYSE.