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This page Bundle was uploaded by Andrea Mena on Sunday December 6, 2015. The Bundle belongs to Finance 381 at Southeastern Louisiana University taught by Danielle Lewis in Fall 2015. Since its upload, it has received 26 views. For similar materials see Finance in Finance at Southeastern Louisiana University.
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If Andrea isn't already a tutor, they should be. Haven't had any of this stuff explained to me as clearly as this was. I appreciate the help!
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Date Created: 12/06/15
You have been told that you need 25600 today in order to have 100000 when you retire 35 years from was used in the present value computation Assume interest is compounded annually PV FV NPER Rate 25600 100000 35 397 Today is your 21st birthday and you just decided to start saving money so you can retire early Thus you a a month starting one month from now You plan to retire as soon as you can accumulate 1 million If you i PMT monthly FV Rate NPER 500 1000000 008 40072 3339316614 Twelve years ago you deposited 3400 into an account Seven years ago you added an additional 1 0C for the first 5 years and 55 percent compounded annually for the last 7 years How much money do you NPER PV Rate FV 5 3400 008 499572 NPER PV Rate FV 599572 0055 872184 IV You want to buy a new sports car from Roy39s Cars for 51800 The contract is in the form of a 48month a PV NPER Rate PMT 51800 48 0092 128413 What is the future value of 4900 invested for 8 years at 7 percent compounded annually FV PV N PER Rate 841911 4900 8 007 Currently you owe the bank 9800 for a car loan The loan has an interest rate of 775 percent and montl After talking with your banker and explaining the situation he has agreed to lower the monthly payments tr will it take you to repay this loan than you had originally planned Owe rate Month PMT NPER 9800 00775 310 3547387886 Owe rate Month PMT NPER 1584 9800 00775 225 51 30914636 Which one of the following is the correct formula for the future value of 500 invested today at 7 percent in D FV 500 1 0078 0000 today into a retirement account He expects to earn 8 percent compounded annua to earn 5 percent compounded annually How much money will he have in his account when he retires 38 PV Rate NPER FV 10000 008 26 7396353 PV Rate NPER FV 7396353 005 12 13282788 Ten years from now you will be inheriting 100000 What is this inheritance worth to you today if you can NPER FV Rate PV 100000 0055 5854306 0 Alfa Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs 10000 p 00475 21052632 You want to borrow 40000 from your local bank to buy a new sailboat You can afford to make monthly p PV Month PMT NPER Rate 40000 775 60 610 Overnight Trucking recently purchased a new truck costing 150800 The firm financed this purchase at 8 PV Rate Month PMT NPER 150800 0086 2100 844 lsaac only has 690 today but needs 800 to buy a new laptop How long will he have to wait to buy the la PV FV Rate NPER 690 800 0054 281 If today is year 0 what is the future value of the following cash flows 10 years from now Assume an intere Year TIME Cash Flow Rate FV 8 8500 0078 1550133 7 9300 0078 1573310 4 7100 0078 958812 4082255 Uptown lnsurance offers an annuity due with semiannual payments for 25 years at 6 percent interest The NPER Rate M PV PMT 006 2 200000 777310 l Im At the end of this month Les will start saving 150 a month for retirement through his company39s retiremer If he is employed by this firm for 30 more years and earns an average of 105 percent on his retirement sa PMT NPER Rate FV 225 30 0105 56619022 You want to save 200 a month for the next 24 years and hope to earn an average rate of return of 11 pert beginning of each month rather than the end of each month PMT month NPER years Rate years FV Type 200 24 011 28283857 1 28026943 256914 Ben invested 5000 twenty years ago with an insurance company that has paid him 5 percent simple inte 5 percent interest compounded annually How much more interest has Charles earned than Ben over the PV NPER Rate simple FV 5000 20 005 10000 PV NPER Rate comp FV 5000 20 005 1326649 326649 You want to have 25000 for a down payment on a house 6 years from now If you can earn 65 percent I FV NPEr Rate PV 25000 6 0065 1713335 Jeff deposits 3000 into an account which pays 25 percent interest compounded annually At the same t PV Rate NPER FV JEFF 3000 0025 3 323067 PV Rate NPER FV KURT 3000 005 3 945750 If the appropriate discount rate for the following cash flows is 117 percent per year what is the present va Years Cash Flows Rate PV 1 21600 0117 1933751 2 25900 0117 2075838 3 38700 0117 2776844 4 16200 0117 1040644 Total 7827077 Angela has just received an insurance settlement of 35000 She wants to save this money until her daug how much will she have saved when her daughter enters college 10 years from now PV Rate NPER FV 35000 0055 10 5978506 You just won 50000 and deposited your winnings into an account that pays 55 percent interest compou PV Rate FV NPER 50000 0055 100000 1295 You just won a contest You will receive 100000 a year for 20 years starting today If you can earn 12 pe FV NPER Rate PV 100000 20 012 83657769 now What rate of interest are going to save 500 can earn an average of 8 percent on your savings how old will you be when you retire 5439316614 0 to this account You earned 8 percent compounded annually have in your account today innuity due at a 92 percentAPR What will your monthly payment be 1ly payments of 310 Your financial situation recently changed such that you can no longer afford thesl 0 225 while keeping the interest rate at 775 percent How much longer Iterest for 8 years lly on his money for the next 26 years After that he wants to be more conservative so only expects 39 years from now assuming this is the only deposit he makes into the account earn 55 percent interest compounded annually er year forever Ifthe required return on this investment is 475 percent how much will you pay for the layments of 775 but no more Assuming monthly compounding what is the highest rate you can afforlt 6 percent interest with monthly payments of 2100 How many years will it take the firm to pay off this lptop if he earns 54 percent compounded annually on his savings est rate of 78 percent per year annuity costs 200000 today What is the amount of each annuity payment nt plan His employer will contribute an additional 050 for every 100 that he saves lvings how much will Les have in his retirement account 30 years from now cent How much more will you have at the end of the 24 years if you invest your money at the 12 rest on his funds Charles invested 5000 twenty years ago in a fund that has paid him past 20 years compounded annually on your savings how much do you need to deposit today to reach your goal ime Kurt deposits 3000 into an account paying 5 percent interest compounded annually At the end i lue of the cash flows hter goes to college If she can earn an average of 55 percent compounded annually Inded annually How long will you have to wait until your winnings are worth 100000 ercent on your investments what are your winnings worth today e payments poHcy d on a 60month APR loan debt You would like to borrow money three years from now to build a new building In preparation for applyin Which set of ratios represents the best target mix considering that you want to obtain outside financing D Cash coverage ratio 26 debtequity ratio 03 h Centers has total equity of 861300 sales of 148 million and a profit margin of 52 E 894 percent Morgantown Movers has net working capital of 11300 current assets of 31200 equity of 53400 a E 53700 The Universal Network has sales of 496500 cost of goods sold of 264900 and inventory of 8710 B 304 Lester39s BBQ has 121000 in current assets and 109000 in current liabilities These values as referre C working capital Afirm has net income of 114000 a return on assets of 126 percent and a debtequity ratio of 060 l C 2016 percent Whitt39s BBQ has sales of 348000 a profit margin of 81 percent and a capital intensity ratio of 070 l E 143 Which one of the following is most apt to create a situation where an agency conflict could arise C Separating management from ownership All else equal an increase in which one of the following will decrease owners39 equity B Increase in accounts payable Which one of the following statements related to securities dealers is correct B Dealers buy and sell from their own inventory Afirm has total assets of 523100 current assets of 186500 current liabilities of 141000 and total B 070 The goal of financial management is to increase the D current market value per share Holly Farms has sales of 581 600 costs of 479700 depreciation expense of 32100 and interest p B 35612 he following is most apt to align management39s priorities with shareholders39 interests B Compensating managers with shares of stock that must be held for three years before the shares ca Which one of the following transactions occurred in the primary market C South Wind Products sold 1000 shares of newly issued stock to Mike Afirm earns 018 in profit for every 1 of equity in the firm The company borrows 060 for every 1 c B 1125 percent Valentino39s maintains a constant debtequity ratio of 045 The firm had net income of 11800 for the ye C 911 percent Last year The Pizza Joint added 4100 to retained earnings from sales of 93600 The company had The tax rate was 34 percent What was the amount of the depreciation expense C 7800 Use the following tax table to answer this question Taxable income Tax rate 0 50000 15 50001 75000 25 75001 100000 34 100001 335000 39 335001 10000000 34 Bait and Tackle has taxable income of 411562 How much does it owe in taxes D 13993108 The Paint Ball Range lnc paid 30500 in dividends and 7600 in interest over the past year Sales to was 16500 The applicable tax rate is 34 percent What is the amount of the operating cash flow D 37168 Leslie Printing has net income of 26310 for the year At the beginning of the year the firm had commc At the end of the year the firm had total equity of 142430 The firm does not pay dividends What is tl A 1500 Ted currently owns 100 shares of a publicly traded stock that he would like to sell Which one of the foil E Secondary market transaction Will and Bill both enjoy sunshine water and surfboards Thus the two friends decided to create a bUSll Will and Bill will equally share in the decision making and in the profits or losses Which type of busines E General partnership Miser Materials paid 27500 in dividends and 28311 in interest over the past year while net working 1 fixed assets and had depreciation expenses of 16805 During the year the firm issued 25000 in net E 51811 lg for that loan you are in the process of developing target ratios for your firm in the relatively near future percent What is the return on equity and longterm debt of 11600 What is the amount of the net fixed assets 10 What is the inventory turnover rate ed to as the firm39s Nhat is the return on equity Nhat is the total asset turnover rate debt of 215000 What is the debtequity ratio gtaid of 8400 The tax rate is 42 percent How much net income did the firm earn for the period in be sold f equity What is the firm39s return on assets ear and paid 6500 in dividends The firm has total assets of 92000 What is the sustainable growth l costs of 74400 dividends of 2500 and interest paid of 1400 gttaled 211800 with costs of 167900 The depreciation expense on stock of 55000 paidin surplus of 11200 and retained earnings of 48420 he amount of the net new equity raised during the year owing provides the most efficient means for Ted to sell his shares ness together renting surfboards paddle boats and inflatable devices in California 5s did they create if they both have full personal liability for the firm39s debts capital increased from 13506 to 18219 The company purchased 42000 in net new t new equity and paid off 21000 in longterm debt What is the amount of the cash flow from assets rate
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