Question

Hanan corporation has the following relationships: Return on assets (ROA) 4%, Return on equity (ROE) 8%. What is the equity ratio?
Select one:
a. 25%
b. 40%
c. 50%
d. 60%

IF CDD has sales revenues of $300,000 and inventory turnover 5x. Find the company ending inventories?
Select one:
a. $300,000
b. $50,000
c. $240,000
d. $60,000

Find the price of a corporate bond which has a par value of $1000 and coupon payment is 5% and yield is 8%. The maturity of the bond is 10 years?
Select one:
a. 986.4$
b. 798.7$
c. 1230$
d. 895.4$

What is the present value of a 5-year annuity due with annual payments of $200, evaluated at a 10 percent interest rate?
Select one:
a. $850.25
b. $833.97
c. $900.25
d. $1000

You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate is 8 percent. What is the future value?
Select one:
a. $46,255.8
b. $96,255.3
c. $60,255.0
d. $50,255.2

Answer 1

1.
=4%/8%
=50.0000%

2.
=300000/5
=60000.00

3.
=1000*5%/8%*(1-1/1.08^10)+1000/1.08^10
=798.70

4.
=200/10%*(1-1/1.10^5)*1.10
=833.97

5.
=4800/8%*(1-1/1.08^7)*1.08
=26989.82