ABC, Inc. has a total asset turnover of 1.3 and a net profit

ABC, Inc. has a total asset turnover of 1.3 and a net profit

Subject: Business    / Finance
Question

QUESTION 1

ABC, Inc. has a total asset turnover of 1.3 and a net profit margin of 5.2%. The firm has a return on equity of 21.7%. Calculate Marshall’s debt ratio.

Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. For example, if you get 0.1234567, then enter as 12.35 in the answer box.

1 points

QUESTION 2

ABC Company offers a perpetuity which pays annual payments of $17,560. This contract sells for $304,166 today. What is the interest rate?

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 3

If you receive $825 at the end of each year for the first two years and $628 at the end of each year for the next two years.
Assume interest rate is 5%. What is the value at the end of the 4th year? That is. solve for FV at the end of the 4th year.

Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 4

Suppose an investment offers to double your money in 38 years. What annual rate of return are you being offered if interest is compounded semi-annually?

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 5

ABC Company lists total assets of $4,070, current liabilities of $252 , long-term debt of $537 , and 214 shares of common stock. If the market price per share is $56, what is the market-to-book ratio?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 6

ABC’s current assets comprise of cash, accounts receivables, and inventory. ABC has $10,342 in cash, $8,947 in accounts receivables, and $5,725 in inventory. If the current ratio is 1.7 times, compute the quick ratio.

Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 7

ABC Company has $511,828 of operating income after all costs but before $34,287 of interest income, $30,718 of dividend income, and taxes. What is the tax expense?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 8

ABC Company earned $764,558 in taxable income for the year. How much tax does the company owe on this income?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 9

Which one of the following capital budgeting technique ignores time value of money?

Net Present Value (NPV)

Payback

Internal Rate of Return (IRR)

Modified Internal Rate of Return (MIRR)

Profitability Index

1 points

QUESTION 10

ABC Company has total assets of $686,251. There are 46,588 shares outstanding with a market value of $39 per share. If the net profit margin is 9.1% and the total asset turnover is 2.8, what is the price/earnings (P/E) ratio?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 11

ABC is reviewing a project that will cost $1,740.The project will produce cash flows $591 at the end of each year for the first two years and $647 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 12%.

Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 12

Consider a taxable bond with a yield of 11% and a tax-exempt municipal bond with a yield of 4%. At what tax rate would you be indifferent between the two bonds?

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 13

What is the future value of $95,543 invested for 9 years at 5% compounded semi-annually?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 14

How many years will it take to triple your money at 4% compounded monthly?

Enter your answer rounded off to TWO decimal points. Do not enter “years” in the answer box.

1 points

QUESTION 15

If you receive $1,213 at the end of each year for the first three years and $5,652 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 4%.

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 16

Suppose you invest $17,450. If the interest rate is 9% compounded quarterly for the first 10 years and 14% compounded monthly for the next 5 years, what is the future value after 15 years?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 17

ABC Company had beginning retained earnings of $1,137. During the year, the company reported sales of $19,339, costs of $7,616, depreciation of $1,223, dividends of $1,385, and interest paid of $2,660. The tax rate is 19 percent. What is the retained earnings balance at the end of the year?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 18

What is the net present value of the following cash flows? Assume an interest rate of 3%
Year    CF
0    -$14,752
1    $7,201
2    $6,652
3    $8,551

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.

1 points

QUESTION 19

The present value of a 14-year annuity is $99,962. If the interest rate is 14% and payments are made at the end of each period, what is the amount of each payment?
Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 20

ABC, Inc. has total assets of $155,311, current assets of $29,370, current ratio of 3.9, and equity multiplier of 7.3. Compute long term debt.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 21

Suppose you take a mortgage for $132,358 for 18 years with annual payments. If the annual interest rate is 6.7%, calculate the total interest amount paid over the life of the loan. That is, calculate the total interest paid in 18 years.

Hint: Use the amortization table.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 22

ABC Company has net working capital of $1,930, current assets of $8,410, long-term debt of $1,427, and equity of $4,343. What is the amount of net fixed assets?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box

1 points

QUESTION 23

Debbie wants to have $64,075 in her bank account 5 years from now. The account will pay 1.1% interest per month. How much money does she need to put in her bank account at the end of each month to achieve this goal?

Enter your answer rounded off to two decimal points. Do not enter % or $ in the answer box.

1 points

QUESTION 24

What is the effective rate of 20.69% compounded quarterly?

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 25

You are given the following information about ABC Company:
Interest expenses = $26,153
Times Interest Earned Ratio = 3.1 times
Tax Rate = 34.7%

What is the net income?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 26

You are given the following data for ABC Inc.:
Net income = $600
Net operating profit after taxes (NOPAT) = $1,364
Total assets = $2,500
Stockholders’ equity = $1,800
Total debt = $700
Total operating capital = $5,414
Barnes’ weighted average cost of capital is 8.2%.
What is the economic value added (EVA)?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 27

A project has the following cash flows. What is the internal rate of return?

Year 0 1 2 3

Cash flow -$121,000 68,150 $42,200 $39,100

12.71%
14.39%
13.47%
13.85%
14.82%

1 points

QUESTION 28

ABC Company has a debt ratio of 0.73. What is the debt-equity (D/E) ratio?

Note: Enter your answer rounded off to two decimal points. For example, if your answer is 0.123456789 then enter as 0.12 in the answer box.