60.1K

Verified Solution

Link Copied!

can post answer to one question only if wanted

q1.

Which of the following statements about the time value of money is correct?

Question 16 options:

	None of the above statements are correct.
	Only cash flows that occur at the same point in time can be directly compared.
	The present value of a cash outflow is positive.
	Arbitrage opportunities require risks in order for them to be profitable.
	The future value of a cash flow is equal to its present value.

q2.

A company has an equity multiplier of 1.5, a profit margin of 9%, and return on equity of 20%. What is the asset turnover ratio for this firm?

Question 18 options:

	1.08
	0.68
	2.7
	2.09
	1.48

q3.

An investment fund promises to pay $650 at the end of each year for 10 years in return for an initial investment of $5,000. What is the promised annual rate of return?

Question 20 options:

	3.87%
	5.73%
	6.37%
	5.08%
	9.69%

q4.

A firm has assets of $200,000, non-debt liabilities of $10,000, and equity of $100,000. What would be the net new financing for this firm if it wants a dividend payout of 40% and expects to have 15% sales growth and pro-forma net income of $30,000?

Question 21 options:

	$1,500
	$10,500
	-$3,500
	$16,500
	$6,000

q5.

You expect to live 20 years beyond retirement and want to be able to withdraw $30,000 at the beginning of each year during this period. If your retirement account can earn an 8.5% annual rate of return, how much money must be in this account just before you retire?

Question 22 options:

	$264,547
	$308,032
	$294,544
	$318,108
	$288,084

Answer & Explanation Solved by verified expert

See Answer