ABC is reviewing a project that will cost $1,734
Question 1ABC is reviewing a project that will cost $1,734.The project will produce cash flows $760 at the end of each year for the first two years and $698 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 14%.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 pointsQuestion 2ABC Company has total assets of $702,022. There are 51,895 shares outstanding with a market value of $34 per share. If the net profit margin is 5.6% and the total asset turnover is 1.6, what is the price/earnings (P/E) ratio?Enter your answer rounded off to two decimal points.1 pointsQuestion 3ABC Company has a debt ratio of 0.89. 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.1 pointsQuestion 4ABC Company earned $438,069 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 pointsQuestion 5ABC Company offers a perpetuity which pays annual payments of $18,791. This contract sells for $273,771 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 pointsQuestion 6ABC, Inc. has total assets of $107,099, current assets of $24,497, current ratio of 2.9, and equity multiplier of 3.4. Compute long term debt.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 7The present value of a 14-year annuity is $217,758. 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 pointsQuestion 8What is the future value of $67,065 invested for 21 years at 3% compounded semi-annually?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 9ABC, Inc. has a total asset turnover of 1.1 and a net profit margin of 7.5%. The firm has a return on equity of 28.6%. 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 pointsQuestion 10Suppose you take a mortgage for $104,353 for 19 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 19 years.Hint: Use the amortization table.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 11If you receive $831 at the end of each year for the first two years and $126 at the end of each year for the next two years.Assume interest rate is 15%. 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 pointsQuestion 12What is the effective rate of 29.37% 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 pointsQuestion 13A project has the following cash flows. What is the internal rate of return?Year 0 1 2 3Cash flow -$121,000 68,150 $42,200 $39,10013.85%13.47%12.71%14.39%14.82%1 pointsQuestion 14You are given the following data for ABC Inc.:Net income = $600Net operating profit after taxes (NOPAT) = $1,362Total assets = $2,500Stockholders’ equity = $1,800Total debt = $700Total operating capital = $5,931Barnes’ weighted average cost of capital is 6.7%.What is the economic value added (EVA)?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 15What is the net present value of the following cash flows? Assume an interest rate of 7%Year CF0 -$13,4551 $7,5622 $6,8613 $7,633Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.1 pointsQuestion 16ABC Company has $531,790 of operating income after all costs but before $49,581 of interest income, $58,495 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 pointsQuestion 17How many years will it take to triple your money at 15% compounded monthly?Enter your answer rounded off to TWO decimal points. Do not enter “years” in the answer box.1 pointsQuestion 18ABC Company had beginning retained earnings of $2,187. During the year, the company reported sales of $21,546, costs of $6,919, depreciation of $1,003, dividends of $1,226, and interest paid of $2,100. The tax rate is 16 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 pointsQuestion 19Consider a taxable bond with a yield of 12.5% and a tax-exempt municipal bond with a yield of 6.3%. 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 pointsQuestion 20Which one of the following capital budgeting technique ignores time value of money?Net Present Value (NPV)PaybackInternal Rate of Return (IRR)Profitability IndexModified Internal Rate of Return (MIRR)1 pointsQuestion 21ABC Company lists total assets of $4,961, current liabilities of $381 , long-term debt of $602 , and 307 shares of common stock. If the market price per share is $63, what is the market-to-book ratio?Enter your answer rounded off to two decimal points.1 pointsQuestion 22ABC’s current assets comprise of cash, accounts receivables, and inventory. ABC has $14,339 in cash, $5,997 in accounts receivables, and $6,508 in inventory. If the current ratio is 3.4 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 pointsQuestion 23Debbie wants to have $56,582 in her bank account 4 years from now. The account will pay 0.2% 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 pointsQuestion 24ABC Company has net working capital of $878, current assets of $5,659, long-term debt of $2,829, and equity of $1,193. What is the amount of net fixed assets?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box1 pointsQuestion 25Suppose you invest $32,408. If the interest rate is 12% compounded quarterly for the first 10 years and 3% 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 pointsQuestion 26You are given the following information about ABC Company:Interest expenses = $19,871Times Interest Earned Ratio = 4 timesTax Rate = 32.9%What is the net income?Enter your answer rounded off to two decimal points.1 pointsQuestion 27Suppose an investment offers to double your money in 16 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 pointsQuestion 28If you receive $1,977 at the end of each year for the first three years and $8,523 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 6%.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.
