finance final

13.99 percent $325,000 = $40,000 ×(1 + r)16

Assume the total cost of a college education will be $325,000 when your child enters college in 16 years. You presently have $40,000 to invest and do not plan to invest anything further. What annual rate of interest must you earn on your investment to cover the entire cost of your child's college education?

$1,011.30 PV = [(.065 × $1,000) / 2]×{(1 - {1 / [1 + (.0636/ 2)]23}) / (.0636 / 2)} + $1,000 / [1 + (.0636 /2)]23

Blue Water bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 11.5 years. What is the current price of these bonds if the yield to maturity is 6.36 percent?

8.38 percent PV = $15,000 = $345 × (1 - {1 / [1 + (r / 12)]52}) / (r / 12)

City Motors will sell a $15,000 car for $345 a month for 52 months. What is the interest rate?

$10,400 Net working capital = $21,100 + 8,600 -19,300 = $10,400

Donut Delite has total assets of $31,300, long-term debt of $8,600, net fixed assets of $19,300, and owners' equity of $21,100. What is the value of the net working capital?

.95 percent g =.0948- ($1.58/$18.53)

Dry Dock Marina is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total return of 9.48 percent. What is the dividend growth rate?

$9,324 Net income = ($509,600 -448,150 -36,100 -12,400)(1 -.28) = $9,324

Holly Farms has sales of $509,600, costs of $448,150, depreciation expense of $36,100, and interest paid of $12,400. The tax rate is 28 percent. How much net income did the firm earn for the period?

$9,062.07 FV = $835,000 = C ×[(1 + .0067)72 - 1] / .0067

Kurt wants to have $835,000 in an investment account six years from now. The account will pay .67 percent interest per month. If he saves money every month, starting one month from now, how much will he have to save each month to reach his goal?

4.73 percent PV = $976 = [(.045 × $1,000) / 2] ×{(1 - {1 / [1 + (r / 2)]29}) / (r / 2)} + $1,000 / [1 + (r/ 2)]29

New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 14.5 years, and have a 4.5 percent coupon. The current price is quoted at 97.6. What is the yield to maturity?

$1,300,150 Enterprise value = (68,500 ×$13.50) + $438,500-63,100 = $1,300,150

Suppose Healey Corp. has the following characteristics: Shares outstanding: 68,500 Current share price: $13.50 Total debt: $438,500 Total cash: $63,100 Based on the formula above, what is the enterprise value of this company?

$903.05 PV = [(.045 × $1,000)/ 2] ×{(1 - {1 / [1 + (.0623/ 2)]14}) / (.0623 / 2)} + $1,000 / [1 + ( .0623 / 2)]14

The 4.5 percent bond of JL Motors has a face value of $1,000, a maturity of 7 years, semiannual interest payments, and a yield to maturity of 6.23 percent. What is the current market price of the bond?

4.96 percent PV = $1,087 = [(.06 × $1,000) / 2] ×{(1 - {1 / [1 + (r / 2)]22}) / (r / 2)} + $1,000 / [1 + (r/ 2)]22

The 6 percent semiannual coupon bonds of IPO, Inc., are selling for $1,087. The bonds have a face value of $1,000 and mature in 11 years. What is the yield to maturity?

.47 Debt-equity ratio = 1.47 - 1 = .47

The Gift Shoppe has total assets of $487,920 and an equity multiplier of 1.47. What is the debt-equity ratio?

6.68 percent .1162 = $2.38 / $48.20 + g

The common stock of Sweet Treats has a total return of 11.62 percent, a stock price of $48.20, and recently paid an annual dividend of $2.38. What is the capital gains rate if the company maintains a constant dividend?

$184.80 PV = $7,800 = C ×[(1 - {1 / [1 + (.0645 / 12)]48}) / (.0645 / 12)]

Today, you are borrowing $7,800 to purchase a car. What will be your monthly payment if the loan is for four years at 6.45 percent interest?

6.90 times Inventory turnover = $512,900 / $74,315 = 6.90 times

UXZ has sales of $683,200, cost of goods sold of $512,900, and inventory of $74,315. What is the inventory turnover rate?

$15.15 P3= ($1.68 × 1.034) / (.137 - .034)= $16.86 P0 = $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373 P0= $15.15

Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. After that, the company plans to increase the dividend by 3.4 percent annually. What is this stock's current value at a discount rate of 13.7 percent?

64.91 years $42,856 = $1,500 ×(1 + .053)t

When you were born, your parents opened an investment account in your name and deposited $1,500 into the account. The account has earned an average annual rate of return of 5.3percent. Today, the account is valued at $42,856. How old are you?

$1,251.60 PV = $51,800 = C × [(1 - {1 / [1 + (.078 / 12)]48}) / (.078 / 12)] × [1 + (.078 / 12)]

You want to buy a new sports car from Roy's Cars for $51,800. The contract is in the form of a 48-month annuity due at an APR of7.8 percent, compounded monthly. What would be your monthly payment?

$31,476.67 Present value = $35,000/(1 + .036)3= $31,476.67

You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent, compounded annually, on your savings. How much do you need to deposit today if this is the only money you save for this purpose?

$8,060 Future value = $6,500 + ($6,500 ×.04 ×6) = $8,060

Your grandparents just gave you a gift of $6,500. You are investing this money for 6 years at 4 percent simple interest. How much money will you have at the end of the 6 years?