FINANCE Problems

Question 1
1. You are given the following information about ABC Company:
Interest expenses = $17,758
Times Interest Earned Ratio = 1.6 times
Tax Rate = 22.8%
What is the net income?
Question 2
1. Suppose an investment offers to double your money in 16 years. What annual rate of return are you being offered if interest is compounded semi-annually?
Question 3
1. ABC's current assets comprise of cash, accounts receivables, and inventory. ABC has $10,342 in cash, $8,947 in accounts receivables, and $5,725 in inventory. If the current ratio is 1.7 times, compute the quick ratio.

Question 4
1. ABC Company earned $438,069 in taxable income for the year. How much tax does the company owe on this income?
Question 5
1. ABC Company has $556,473 of operating income after all costs but before $42,383 of interest income, $52,182 of dividend income, and taxes. What is the tax expense?

Question 6
1. ABC Company has total assets of $789,024. There are 52,104 shares outstanding with a market value of $27 per share. If the net profit margin is 9.4% and the total asset turnover is 2.5, what is the price/earnings (P/E) ratio?
Question 7
1. What is the future value of $75,425 invested for 9 years at 14% compounded semi-annually?

Question 8
1. ABC Company has a debt ratio of 0.2. What is the debt-equity (D/E) ratio?
Question 9
1. Suppose you invest $25,195. If the interest rate is 4% compounded quarterly for the first 10 years and 13% compounded monthly for the next 5 years, what is the future value after 15 years?
Question 10
1. ABC Company has net working capital of $1,956, current assets of $4,354, long-term debt of $2,963, and equity of $4,898. What is the amount of net fixed assets?
Question 11
1. A project has the following cash flows. What is the internal rate of return?
Year 0 1 2 3
Cash flow -$121,000 68,150 $42,200 $39,100


14.82%

12.71%

14.39%

13.85%

13.47%
1 points
Question 12
1. How many years will it take to triple your money at 6% compounded monthly?