DUE TODAY BY 3PM, MATH PROBELMS

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Show all work DUE TODAY BY 3 PM · Part 1For those questions which you need to solve for an answer and the number is not a whole number, round to the nearest hundredth. So if your answer is 15,402. The answer should be entered as 15,402. If the answer is 15,401.645, then the answer should be entered as 15,401.65. · If you’re solving for a percent, the answer should be entered as a decimal. So if your answer is 4.40%. The answer should be entered as .040.

Question 1 (1 point)

Which of the following cannot be engaged in managing the business?

Question 1 options:

	a limited partner
	a general partner
	a sole proprietor
	none of these

Question 2 (1 point)

One reason for the existence of agency problems between managers and share holders is that:

Question 2 options:

	managers know how to manage the firm better than shareholders.
	there is a separation of ownership and control of the firm.
	shareholders have unreasonable expectations about managerial performance.
	none of these.

Question 3 (1 point)

On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on

Question 3 options:

	June 23, 2008.
	July 2, 2008.
	September 20, 2008.
	none of the above

Question 4 (1 point)

During the last year, Sigma Co had Net Income of $143, paid $19 in dividends, and sold new stock for $36. Beginning equity for the year was $670. Ending equity was

Your Answer:

Question 4 options:

Answer

Question 5 (1 point)

The following items are components of a traditional balance sheet. How much are the total assets of the firm?

Plant and equipment	$43,200
Common stock	15,000
Cash	6,600
Inventory	21,600
Bad debt reserve	6,000
Paid in excess	6,000
Accumulated depreciation	26,000
Accounts receivable	22,000

Your Answer:

Question 5 options:

Answer

Question 6 (1 point)

Brighton Corp. bought an oil rig exactly 6 years ago for $116,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $34,000,000. What Capital Gain/Loss will Brighton report on this transaction?

Your Answer:

Question 6 options:

Answer

Question 7 (1 point)

Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $15.00 per share; (2) they issued bonds for which they received $499,000; (3) they paid dividends to their stockholders totaling $85,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for “Cash from financing activities” based on the information above?

Your Answer:

Question 7 options:

Answer

Question 8 (1 point)

Given the following selected information on Cicalese’s Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001.

	Last Year	This Year
EAT	$ 600,000	$ 770,000
Depreciation Exp.	100,000	150,000
Dividends	400,000	550,000
Accounts Receivable	1,500,000	2,000,000
Inventory	3,500,000	2,000,000
Accts. Payable/Accr.	350,000	500,000
Long-Term Debt	2,300,000	3,000,000
Common Stock	2,200,000	2,500,000
Retained Earnings	6,150,000	6,350,000

Your Answer:

Question 8 options:

Answer

Question 9 (1 point)

Cameron Balance Sheet

Accounts Payable	28
Accounts Receivable	65
Accruals	30
Accumulated Depreciation	(175)
Cash	40
Common Stock	120
Fixed Assets (gross)	390
Inventory	133
Long-Term Debt	200
Retained Earnings	65

What is Cameron Inc.’s Net Working Capital?

Your Answer:

Question 9 options:

Answer

Question 10 (1 point)

A firm’s current ratio is 1.1, and its quick ratio is 1.0. If its current liabilities are $11,800, what are its inventories?

Your Answer:

Question 10 options:

Answer

Question 11 (1 point)

Iris Income Statement

Cost of Goods Sold	320
Depreciation Expense	35
Interest Expense	20
Operating Expense (excluding depreciation)	115
Sales	740

What was Iris Inc.’s earnings before interest and
taxes (EBIT)?

Your Answer:

Question 11 options:

Answer

Question 12 (1 point)

Iris Balance Sheet

Accounts Payable	35
Accounts Receivable	65
Accruals	30
Accumulated Depreciation	(175)
Cash	33
Common Stock	120
Fixed Assets (gross)	390
Inventory	132
Long-Term Debt	200
Retained Earnings	65

What is Iris Inc.’s Total Assets?

Your Answer:

Question 12 options:

Answer

Question 13 (1 point)

The Merriam Company has determined that its return on equity is 15 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.35 and total assets turnover = 2.8. What is the net profit profit margin?

Question 13 options:

	.0542
	.0696
	.0348
	.1282

Question 14 (1 point)

Flying Tigers, Inc., has net sales of $710,000 and accounts receivables of $165,000. What is the firm's accounts receivables turnover?

Your Answer:

Question 14 options:

Answer

Question 15 (1 point)

Reagan Corp. has reported a net income of $810,300 for the year. The company's share price is $13.58, and the company has 319,100 shares outstanding. Compute the firm's price-earnings ratio.

Your Answer:

Question 15 options:

Answer

Question 16 (1 point)

You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment?

Question 16 options:

	9%
	10%
	11%
	12%

Question 17 (1 point)

The First National Bank has agreed to lend you
$30,000 today, but you must repay $42,135 in 3 years. What rate is the bank is charging you?

Question 17 options:

	13%
	12%
	11%
	10%

Question 18 (1 point)

The Florida lottery agrees to pay the winner $269,000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.09?

Your Answer:

Question 18 options:

Answer

Part 2

Question 1 (1 point)

What is the future value of $1,200, placed in a saving account for four years if the account pays 0.07, compounded quarterly?

Your Answer:

Question 1 options:

Answer

Question 2 (1 point)

Your brother, who is 6 years old, just received a trust fund that will be worth $25,000 when he is 21 years old. If the fund earns 0.08 interest compounded annually, what is the value of the fund today?

Your Answer:

Question 2 options:

Answer

Question 3 (1 point)

If you were to borrow $9,900 over five years at 0.11 compounded monthly, what would be your monthly payment?

Your Answer:

Question 3 options:

Answer

Question 4 (1 point)

Your uncle promises to give you $600 per quarter for the next five years. How much is his promise worth right now if the interest rate is 0.08 compounded quarterly?

Your Answer:

Question 4 options:

Answer

Question 5 (1 point)

A stock has an expected return of 0.09 and a variance of 0.21. What is Its coefficient of variation?

Your Answer:

Question 5 options:

Answer

Question 6 (1 point)

Use the following information to calculate your company’s expected return.

State	Probability	Return
Boom	20%	0.14
Normal	60%	0.12
Recession	20%	-0.16

Your Answer:

Question 6 options:

Answer

Question 7 (1 point)

You have invested in stocks J and M. From the following information, determine the beta for your portfolio.

	Expected	Amount of
	Return	Investment	Beta
Stock J	0.11	$100,000	1.00
Stock M	0.10	$300,000	0.63

Your Answer:

Question 7 options:

Answer

Question 8 (1 point)

Frazier Manufacturing paid a dividend last year of
$2, which is expected to grow at a constant rate of 5%. Frazier has a beta of
1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the
value of Frazier’s stock.

Question 8 options:

	$25.93
	$31.33
	$38.53
	$41.63

Question 9 (1 point)

You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.08, 0.16, and 0.02, respectfully?

Your Answer:

Question 9 options:

Answer

Question 10 (1 point)

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1790, and the variance of Sky Diamond is 0.1250. What is the correlation coefficient between the returns of the two stocks?

Your Answer:

Question 10 options:

Answer

Question 11 (1 point)

A project has the following cash flows:

0	1	2	3
($500)	$100.00	$200	$270.00

What is the project’s NPV if the interest rate is $6%?

Your Answer:

Question 11 options:

Answer

Question 12 (1 point)

Assume the following facts about a firm’s financing in the next year. Calculate the weighted cost of the capital of this project:

Proportion of Capital Projected funded by debt = 45%

Proportion of Capital Projects Funded by equity = 55%

Return Received by Bondholders = 0.08

Return Received by Stockholders = 0.15

Your Answer:

Question 12 options:

Answer

Question 13 (1 point)

A project requires an initial outlay of $100,000, and is expected to generate annual net cash inflows of $28,000 for the next 5 years. Determine the payback period for the project

Question 13 options:

	.28 years
	1.4 years
	3.57 years
	17.86 years

Question 14 (1 point)

An investment project requires an initial outlay of $100,000, and is expected to generate annual cash inflows of $28,000 for the next 5 years. (round to the nearest tenth of the percentage) Determine the (Internal Rate of Return) IRR for the project using a financial calculator

Question 14 options:

	12.0%
	3.6%
	12.6%
	12.4%

Question 15 (1 point)

Capital budgeting analysis of mutually exclusive projects A and B yields the following:

	Project A	Project B
IRR	18%	22%
NPV	$270,000	$255,000
Payback Period	2.5 yrs	2.0 yrs

Management should choose:

Question 15 options:

	Project B because most executives prefer the IRR method
	Project B because two out of three methods choose it
	Project A because NPV is the best method
	either project because the results aren’t consistent

Question 16 (1 point)

Christopher Electronics bought new machinery for $5,090,000 million. This is expected to result in additional cash flows of $1,210,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five years.

Your Answer:

Question 16 options:

Answer

Question 17 (1 point)

AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $442,386, $512,178, $562,255, $764,997, $816,500, and $825,375 over the next six years. What is the payback period?

Your Answer:

Question 17 options:

Answer

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