Cash Coverage, Inc. had net sales of $300,000 last year

Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares. The tax rate for the company is 40%. The company had cost of goods sold of $175,000 and its accumulated depreciation increased by $25,000. What is its cash coverage ratio?A.2.50B.3.00C.5.45D.3.71E.4.67F.6.00G.4.31H.8.506 points QUESTION 2You just won the lottery! You wish to put away enough money so that you can withdraw $8,000 per month for 21 years. You can earn 10.2% rate on any funds you deposit. How much will you have to deposit now to meet your goal? (Note: Withdrawal frequency matches compounding frequency.)A.$480,100B.$653,143C.$829,659D.$886,890E.$536,773F.$712,179G.$771,203H.$594,5516 points QUESTION 3Lowell Growth, Inc. has total debt ratio of 0.48 and a dividend payout ratio of 40 percent. If its profit margin is 7 percent and total asset turnover is 2.5, what is its return on assets ratio (ROA)?A.35.6%B.40.0%C.14.6%D.20.6%E.31.5%F.24.0%G.27.6%H.17.5%6 points QUESTION 4Upon graduation from college in two years you plan to go for an extravagant European vacation. Your parents will give you a graduation gift of $3,200 to help with the cost of the vacation. You have $2,000 available at present, which you plan to deposit into an account that pays 10.5 percent interest compounded quarterly. What is the maximum amount you will be able to spend on your vacation?A.$5,885B.$5,553C.$6,004D.$5,777E.$5,661F.$6,109G.$5,437H.$6,2306 points QUESTION 5You are 20 years old and plan to retire with $1,000,000. You have $30,000 available for investment now. You deposit this into an account that pays 10% interest compounded annually? How old will you be when the account has the target amount? (Answers are rounded.)A.55B.61C.57D.52E.65F.59G.63H.546 points QUESTION 6Note: This is a challenging question. Please attempt it in the end. Ms. Ieda Silva plans to retire in 26 years and expects to live for 25 years after retirement. She is preparing a savings plan to meet the following objectives. First, after retirement she would like to be able to withdraw $20,000 per month. The first withdrawal will occur at the end of the first month after retirement. Second, she would like to leave her son an inheritance of $500,000 when she passes on. Finally, she would like to set up a fund that will pay $5,000 per month forever to her favorite charity after she passes on. These payments to the charity will start one month after she passes on. All monies can earn 10 percent annual rate compounded monthly. How much will she have to save per month to meet these objectives? She wishes to make the first deposit a month from now and the last deposit on the day she retires.A.$430.71B.$983.24C.$1,202.17D.$603.38E.$1,550.51F.$1,105.11G.$1,306.52H.$1,014.026 points QUESTION 7The risk premium for an investment is 3 percent. The inflation premium is 4 percent. If the pure rate of interest in the market is 3.0 percent, what should be the yield on a risk-free security? Use exact formulation.A.7.12%B.8.68%C.9.72%D.6.60%E.6.08%F.7.64%G.8.16%H.9.20%6 points QUESTION 8Breads ‘R Us had sales of $45,000 last year. Their total costs were $16,000, and the depreciation charge was $3,000. They have 1,560 shares outstanding and paid dividend of $2.60 per share after keeping 70 percent of the net income as retained earnings. If they paid 40 percent in taxes, how much was the interest expense?A.4,667B.3,467C.2,733D.4,111E.1,000F.5,511G.5,133H.1,9116 points QUESTION 9Quick Corporation has current liabilities of $4,200, inventory of $2,400, and net working capital of $2,000. What is its quick ratio?A.0.9048B.1.0000C.0.9833D.0.9375E.1.0256F.1.0139G.0.9630H.1.03576 points QUESTION 10The Bank of Loans uses the following rating scheme to classify the riskiness of its customers.Risk ClassRisk Premium (%)Prime.05High grade1.0Upper medium grade1.5Lower medium grade2.0Speculative: Non-investment grade4.0Speculative: Highly6.0Substantial risks9.0Extremely speculative12.0 The bank’s pure rate of interest is 4.5% and the inflation premium is 3%. What rate would the bank offer a customer who is in the lower medium grade risk class?A.9.79%B.10.31%C.9.26%D.6.64%E.7.16%F.8.74%G.8.21%H.7.69%6 points QUESTION 11You opened an account with an investment of $2,000. The value of the account quadrupled in 24 years. If interest was compounded quarterly, what rate per quarter did you earn on the account?A.1.9441%B.1.4545%C.2.3374%D.1.3165%E.1.6640%F.1.5376%G.1.1510%H.1.8479%6 points QUESTION 12ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $24,000. Its total debt is $54,000 and total equity is $78,000. Last year, ICC paid dividends of $6,000. If the total debt ratio remains constant and the company grows at the sustainable growth rate in the coming year, how much new borrowing will take place?A.$9,882B.$16,200C.$25,385D.$12,750E.$7,500F.$27,720G.$20,357H.$30,2506 points QUESTION 13Bank A pays 8.6 percent compounded weekly on all deposits. What is the effective rate?A.8.031%B.9.089%C.8.436%D.8.668%E.8.973%F.8.839%G.8.322%H.8.192%6 points QUESTION 14UML Inc. had an EBIT of 65,000, depreciation expense of 8,500, and paid 17,500 in taxes. Its interest costs were $9,000; its long-term borrowing reduced by $4,000; it raised $6,000 in new equity; and paid $12,000 in dividends. If the net capital spending was $27,000, what was the change in net working capital?A.10,000B.11,500C.10,300D.10,900E.11,200F.9,400G.10,600H.9,7006 points QUESTION 15You purchased a new car for $35,000 by making a $10,000 down payment and borrowing the remainder at an annual rate of 9.25 percent for five years. What is your monthly payment?A.$498B.$475C.$570D.$406E.$451F.$428G.$546H.$5226 points QUESTION 16Fast Street Investment Company offers you an investment that promises to triple your money in 51 months. Interest is compounded quarterly. What rate per quarter is the investment promising?A.10.5%B.7.6%C.8.8%D.13.0%E.6.0%F.17.0%G.5.4%H.6.7%6 points QUESTION 17Riverhawk Sales, Inc. had a net income of $15,000 on sales of $100,000 last year. Its balance sheet shows debt of $20,000 and equity of $62,000. If the total dividend paid was $5,500, what is its sustainable growth rate?A.0.1077B.0.1333C.0.2000D.0.0963E.0.1200F.0.1810G.0.1636H.0.14786 points Click Save and Submit to save and submit. Click Save All Answers to save all answers.