A company has net income of $200,000, a profit margin of 7%, and an accounts receivable balance of $120,000. Assuming 100% of sales are on credit, what is the company's days' sales in receivables?

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A company has sales of $50,000, costs of $23,000, depreciation expense of $2,000, and interest expense of $1,500. If the tax rate is 21%, what is the operating cash flow, OCF?

A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply.

Consider the following case:

The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years:

The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar?

$917,500

$1,979,094

$1,775,000

$2,292,500

Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments:

Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $750 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $8,000 and never have to pay annual membership dues.

Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual interest rate is 7.1%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $750 in annual membership dues? (Note: Round your answer up to the nearest year.)

20 years

16 years

18 years

14 years

In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 6% annual interest rate, what is its value as of 2012 (386 years later)?

$119,589,805,520.24

$161,797,972,174.44

$185,715,933,278.49

$140,693,888,847.34

Summer Tyme plc is considering a new three-year expansion project that requires an initial non-current asset investment of £3.9 million. The non-current asset actually is depreciated straight line to zero over the three years of the project. The project is estimated to generate £2,650,000 in annual sales, with costs of £835,000.Suppose the required return on the project is 13 per cent, the project requires an initial investment in net working capital of £300,000, the tax rate is 27 per cent and the non-current asset actually is depreciated straight-line to zero over the three years of the project. What is the project’s year 1 net cash flow? What is the project’s year 2 net cash flow? What is the project’s year 3 net cash flow? What is the project`s NPV?

( Should we consider net working capital in net cash flow year 3?

A firm has Net Income of $60,800 and has Total Assets of $601,991. The firm’s payout ratio is 60 percent. What is the firm’s Internal Growth rate? Can the firm grow at 4 percent without raising external funds and why? (Hint: Need to first compute ROA).

Group of answer choices

6.45 percent; No, because 4 percent < Internal Growth Rate

6.45 percent; Yes, because 4 percent < Internal Growth Rate

4.21 percent; Yes, because 4 percent < Internal Growth Rate

4.21 percent; No, because 4 percent < Internal Growth Rate

No idea

Upriver Tours has balance sheet values of: Inventory $70,500; accounts receivable $50,700; accounts payable $58,900; cash $32,300, notes payable $20,000, long-term debt $134,700, and net fixed assets $504,500. What is the current ratio? Do you believe the company can meet its short-term obligations?

Group of answer choices

1.95, yes

0.95, no

2.11, yes

1.98, no

0.98, yes

What differentiates an ordinary investment from a security since we are discussing finance? List all the factors. I'm a newbie on your board and struggling what are the differences. Can you help me understand?

Problem 3-29 Market Value Ratios [LO2]

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Calculate the duration of a 3 year from maturity bond that has a 1.50% annual pay coupon rate and a 6.50% yield. (Use 4 decimal point precision.)

Calculate the duration of a 3 year from maturity bond that has a 5.00% annual pay coupon rate and a 2.50% yield. (Use 4 decimal point precision.)

Individual A just turned 30 years old, have just received your MBA, and have accepted your first job. He must decide how much money to put into its retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until he retires on his sixty-fifth birthday. After that point, individual A can make withdrawals as he sees fit.

Individual A decides that he will plan to live to 100 and work until hi turns 65. He estimates that to live comfortably in retirement, he'll need $100,000 per year starting at the end of the first year of retirement and ending on his one-hundredth birthday.

Individual A will contribute the same amount to the plan at the end of every year that you work.

(a) How much does Individual A need to contribute each year to fund his retirement? The situation above is not very realistic because most retirement plans do not allow you to specify a fixed amount to contribute every year. Instead, you are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $75,000 per year and it will grow 2% per year until you retire.

(b) Assuming everything else stays the same as in the previous question, what percentage of his income does he need to contribute to the plan every year to fund the same retirement income?

JPJ Corp has sales of $1.29 million, accounts receivable of $46,000, total assets of $5.17million(of which $3.19 million are fixed assets), inventory of $155,000, and cost of goods sold of $596,000. What are JPJ’s accounts receivable days? Fixed asset turnover? Total asset turnover? Inventory turnover?

What differentiates an ordinary investment from a security