1. What is the net change (net purchase or sale) in Property, Plant and Equipment account in 2018 given the following information?

2017 Net Property, Plant and Equipment Balance = 14,300,000

2018 Net Property, Plant and Equipment Balance = 12,850,000

2018 Total Accumulated Depreciation Balance = 5,650,000

2018 Depreciation Expense = 1,150,000

Group of answer choices

a. 1,450,000 net purchase

b. 1,450,000 net sale

c. 300,000 net purchase

d. 300,000 net sale

2. Using the balance sheet accounts below, what is the firm's Long Term Debt Ratio?

Cash = 12,300,000

Accounts Receivable = 6,700,000

Inventory = 5,000,000

Fixed Assets = 21,000,000

Current Portion of Long Term Debt = 3,900,000

Accounts Payable = 1,700,000

Long Term Bonds = 29,000,000

Common Stock = 6,000,000

Retained Earnings = 4,400,000

Group of answer choices

a. 73.60%

b. 76.89%

c. 75.98%

d. 64.44%

1,You plan to invest $50,000 at the end of year 2019, $60,000 at the end of year 2020 and $90,000 at the end of year 2021. If you earn 3.8% annual rate of return, how much will you have at the end of 2021? Round to the nearest whole dollar.

2. An investment will pay you $240,000 at the end of 10 years. At an annual rate of 15% (compounded semi-annually), what is the price of this investment today? Round to the nearest whole dollar.

a.2,446,678

b. 59,324

c. 116,447

d. 56,499

assume the assets are 1500,000, current liabilities are 250,000, inventory is 50,000, total debt is 1200,000and total assets are 3,500,000. Compute the liquidity and leverage ratios for this organization. Assume the net sales for the organization are 1750,000. Compute the asset turnover activity ratio. comment 1-2 sentence regarding the health of the organization based upon your computations

NPV gives a profit (discounted revenues minus discounted costs) for a project. IRR gives the rate of return on the initial investment a project produces. Both are rational criteria, but depending on the situation one may give a clearer picture of the opportunities of a project compared to the other. Discuss with examples to support your arguments.

Emperor’s Clothes Fashions can invest $4 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 5 million jars of makeup a year. Fixed costs are $3.7 million a year, and variable costs are $2.40 per jar. The product will be priced at $3.80 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 10%, and the tax rate is 40%. a. What is project NPV under these base-case assumptions? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is NPV if variable costs turn out to be $2.60 per jar? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) c. What is NPV if fixed costs turn out to be $3.6 million per year? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) d. At what price per jar would project NPV equal zero? (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Consider the following.

a. What is the duration of a two-year bond that pays an annual coupon of 9 percent and whose current yield to maturity is 14 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))
b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.2 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Zippen Industries 9.250% bonds mature August 2, 2028. The bond is callable August 2, 2019 at 5.125 call premium. The offer on the bond to settle August 2, 2015 is currently 107.884

The Yield to Maturity is %

and the Yield to Call is %

1.For project A in year 2, inventories decrease by €5000 and accounts payable increase by €1500. Accounts receivable remain the same. Calculate the increase or decrease in net working capital for year 2.

2. You would like to have enough money saved to receive $100000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 5 percent.)

3. The market value of Cable Company's equity is $25 million and the market value of its debt is $15 million. If the required rate of return on the equity is 13 percent and that on its debt is 5 percent, calculate the company's cost of capital. (Assume no taxes.)

4. LOWTEC Sustainable AG is a German company specialized in energy-efficient technology for buildings. Given are the following estimated data for year 2017: Profit after taxes = €35 million; Depreciation = €28 million; Investment in fixed assets = $50 million; Investment net working capital = $4 million. Calculate the estimated free cash flow (FCF) for year 2017

5. The market value of Greenergy ltd equity is $130 million and the market value of its debt is $40 million. If the required rate of return on the equity is 18 percent and that on its debt is 5 percent, calculate the company's cost of capital. (Assume no taxes.)

Suppose an investor buys a call option on 45,000 barrels of oil with an exercise price of $51 per barrel and simultaneously sells a put option on 45,000 barrels of oil with the same exercise price of $51 per barrel. Her net payoff per barrel on these option contracts is _____ if the market price per barrel is $49 and _____ if the price per barrel is $55.

Josh and his new wife Samantha are buying their first house together. They secured a loan for $435,000 at a rate of 9.275% per year for 30 years.

SHOW FORMULAS USED

1)How much are the monthly payments?

2)6 years later, the couple decides they want to refinance their home. How much do they currently owe on the home?

3)The bank is offering a special deal of 6.35% on all home refinances. What would their new monthly payment be?

4)The couple is saving money for their first child. Now that they have refinanced their home, how much will the couple save every month?

5)The couple has made significant upgrades to their home which is currently valued at $575,000. Based on how much they owe at the time of refinance, how much equity do they have?

Gentry Can Company's (GCC) latest annual dividend of $1.25 a share was paid yesterday and maintained its historic 8 percent annual rate of growth. You plan to purchase the stock today because you believe that the dividend growth rate will increase to 9 percent for the next three years and the selling price of the stock will be $46 per share at the end of that time.

A: How much should you be willing to pay for the GCC stock if you require a 12 percent return? Do not round intermediate calculations. Round your answer to the nearest cent.

B: What is the maximum price you should be willing to pay for the GCC stock if you believe that the 9 percent growth rate can be maintained indefinitely and you require a 12 percent return? Do not round intermediate calculations. Round your answer to the nearest cent.

C: If the 9 percent rate of growth is achieved, what will the price be at the end of Year 3, assuming the conditions in Part b? Do not round intermediate calculations. Round your answer to the nearest cent.

A stock is currently priced at $35.00. The risk free rate is 3.2% per annum with continuous compounding. In 4 months, its price will be either $39.90 or $31.15.

Consider the portfolio with the following: long a European call with strike $39.00 expiring in 4 months; a short futures position on the stock with delivery date in 4 months and delivery price $40.00; a derivative which pays, in 4 months, three times the price of the stock at that time.

Using the binomial tree model, compute the price (or "value") of this portfolio.