Question

4. The Mycroft Inquiries Group has a price-earnings ratio of 17.5, net income of $194,000, a...

4. The Mycroft Inquiries Group has a price-earnings ratio of 17.5, net income of $194,000, a book value per share of $22.22, and 70,000 shares of stock outstanding. What is its market to book ratio?

5.      Moriarity Ltd has adopted a policy whereby it will maintain a constant debt-equity ratio. Given this, what is its maximum growth rate if it has net income of $9,600, total equity of $66,000, total assets of $150,000 and a 30% dividend payout ratio?

6.      McCann’s Pizza forecasts sales of $1,000,000 in 2020. The owner, Bryan McCann, will re-invest 40% of 2020 net income into buying a new pizza oven, and will keep the remaining 60% as a dividend. McCann would like to earn $100,000 as dividend. What net profit margin is required for McCann to invest in the oven and make his target dividend?

7.      Please fill in the blanks in the following table:

         Present                Future                   Interest                   Time to

         Value                   Value                      Rate                     Maturity

         $20,000           145,020.51                   6%                      34 years

         88,802.39          $200,000                    7%                      12 years

         $55,000          $111,419.91                  4%                      18 years

         $90,000          $207,408.40                 11%                      8 Years

        

8.   Occasionally, pieces of art sell for fantastic prices. For example, Vincent Van Gogh’s painting, “Sunflowers”, sold at auction in 1987 for $36 million. Its original price, in 1889, was $125. Suppose the painting been in one family for the entire period. What was their average annually compounded rate of return?

9.   Suppose you have invested the following sums on the last day of each year in a mutual fund with front-end loads of 4% and management fees of 0.4%. The fund earned 11% per year. How much will you have at the end of year 10?

Year                Cash Flow

    0                       $1600

    1                       $2500

    2                       $3000

10. If you invested $100,000 today in exchange for a 10%, 15 year annuity, what annual cash flow will you receive?

11. You are car shopping.

a. You have $20,000 you can use as a down payment. Your bank is offering 3.6% (Annual Percentage Rate) financing over 3 years. After constructing your budget, you determine that you can afford monthly car payments of $1250. What is the most you can spend on the car?

b. Unfortunately, from the perspective of your budget, you have your eyes on a Tesla roadster that costs a mere $90,229. You banker says, ok, but your APR is going to be 4.4%. How long will it take you to pay off the car assuming your payment remains the same at $1250 per month?

12. What is the present value of $3,300 per year received annually at the end of years 14 to 66 and the interest rate is 8%?

13. A father wants to create a trust fund for his daughter. He would like the fund to distribute $20,000 per year for 20 years. The father will set aside all of the funds for the trust today in an account that pays 8% APR on average. The first withdrawal from the trust will be in exactly 25 years. The funds in the trust will remain in the investment account as they are withdrawn. How much should the father set aside today?

Homework Answers

Answer #1

Question 1

Please note i have answered first question as per policy. Thanks.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A father wants to create a trust fund for his daughter. He would like the fund...
A father wants to create a trust fund for his daughter. He would like the fund to distribute $20,000 per year for 20 years. The father will set aside all of the funds for the trust today in an account that pays 8% APR on average. The first withdrawal from the trust will be in exactly 25 years. The funds in the trust will remain in the investment account as they are withdrawn. How much should the father set aside...
A car’s price is currently $20,000 and is expected to rise by 6% a year. If...
A car’s price is currently $20,000 and is expected to rise by 6% a year. If the interest rate is 9%, how much do you need to put aside today to buy the car one year from now? Show your calculations! 19,449.54 B. 18,348.62 C. 20,566.04 D. 18,867.93 What is the annually compounded rate of interest (EAR) on an account with an APR of 10% and monthly compounding? Show your calculations! 10.00% B. 10.47% C. 10.52% D. 11.05% What is...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $4,500,000 Preferred $8 stock, $100 par (no change during the year) 2,000,000 The net income was $376,000 and the declared dividends on the common stock were $45,000 for the current year. The market price of the common stock is $9.00 per share. For...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $10 par value (no change during the year) $2,700,000 Preferred $8 stock, $200 par (no change during the year) 8,000,000 The net income was $914,000 and the declared dividends on the common stock were $67,500 for the current year. The market price of the common stock is $17.60 per share. For...
14-8 Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial...
14-8 Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $40 par value (no change during the year) $12,000,000 Preferred $4 stock, $200 par (no change during the year) 8,000,000 The net income was $760,000 and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $17.00 per share....
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $ 11 million $ 8 million 2 23 million 11 million 3 9 million 7 million 4 14 million 8 million 5 22 million 9 million The Hastings Corporation...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation has...
In 4 years, you will start receiving monthly payments of $1000 from a trust fund that...
In 4 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 4 and the payments will last for 33 years. You plan to deposit the money you receive every month into a special account right away that pays 6.80% APR with quarterly compounding. Today the account mentioned above has a balance of $13000. Assuming...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $ 13 million $ 7 million 2 24 million 11 million 3 17 million 6 million 4 18 million 8 million 5 22 million 8 million The Hastings Corporation...