Please answer the following questions

Question 1

A firm has a return on assets (ROA) of 15%,  sales of $200 million, and total assets (TA) of $125 million.  What is its net profit margin (NPM)?   (Round to four decimal places and enter as a decimal instead of a percentage).

Question 2

Arlington Industries has current assets equal to $5 million. The company's current ratio is 2.5, and its quick ratio is 1.0.  What is the firm's level of inventories? (Round to the nearest cent.)

Question 3

Donaldson Corporation has an equity multiplier (financial leverage multiplier) of 4.  The company's assets are financed with some combination of long-term debt and common equity. What is the company's debt  ratio?  (Express your answer in decimal format accurate to four decimal places.)

Question 4

Midland Corporation has $1,000,000 of debt outstanding, and it pays an interest rate of 5 percent annually.   Annual sales are $4 million, its average tax rate is 20 percent, and its net profit margin on sales is 4 percent. What is Midland's TIE ratio?

Question 5

Amortize a 30-year, $250,000 loan with end-of-month payments. The APR is 9%. Which of the following statements is (are) correct?  (Choose all that are correct).

Group of answer choices

The monthly payment is $2,011.56

The ending balance of the loan after 3 payments is $249,447.60.

The total interest paid after three payments is $5,621.92.

The APY on the loan is 9.63%.

The loan repayment portion of the second payment is $137.58

Question 6

Suppose you can save $300 per year at the end of each year for 20 years and earn 8% interest per year. However, you cannot start saving for five years, so the first payment occurs at the end of the fifth year. What is the present value of this annuity?

Question 7

You buy an investment with a perpetual cash flow is $3,000 per year and the APY is 9%. What is the value of this perpetuity if the first cash flow occurs two years from today?

Question 8

Nissan is offering “36-month, 0.3% APR special financing” or “$1.500 cash back” on a car you have decided to buy.  The stated price for the car is $21,500.  You can get a 36-month loan, with monthly payments, for the money to buy the car from a local bank  at 6.5% APR.  How much do you save in present value terms if you choose the Honda financing instead of the bank financing?  (Round to the nearest cent.)

Question 9

Consider the value in 5.75 years of a 5-year annuity, with the first $2,100 payment being made one year from today. What is the future value (in 5.75 years) if the annual percentage yield (APY) is 6%?

Question 10

What is the future value, 4.25 years (four years and three months)  from now, if the present value is $2,200 and the expected return is 16% APR, compounded daily?

Question 11

Suppose you can save $200 per year at the end of each year for 30 years and earn 8% interest per year. However, you cannot start saving for 10 years, so the first payment occurs at the end of the 10th year. What is the present value of this annuity?

Question 12

Consider the value in 3.75 years of a 3-year annuity, with the first $1,100 payment being made one year from today. What is the future value if the annual percentage yield (APY) is 10%?

Group of answer choices

$3,910.80

$3,815.21

$3,555.27

$3,467.20

Question 13

Your client took out a 30-year $230,000 mortgage (installment debt) with an interest rate of 4.8% APR, which requires monthly payments. If the current loan balance is $114,080.16, how many more payments are there? (Round to the nearest number of payments).

Question 14

Suppose you just won the lottery, which pays $1.0 million per year for 10 years, starting today. (Payments are made at the beginning of the year.) The lottery offers you a one-time lump sum payment today of $7.2 million in place of the annuity. What APY is the lottery using to calculate the present value of the lottery winnings? (Round to four decimal places and enter as a decimal instead of a percentage).

Question 15

Suppose you just turned 25 years old yesterday, you have noting saved toward retirement, but for your birthday, your grandmother just gave you $30,000 to save toward retirement. You want to have $2 million when you retire at age 70.  How much do you have to save every month until then (first payment one month from today) if you earn 6.25% APR on all your money? (Round to the nearest cent.) 

Question 16

A car manufacturer is offering 36-month 2.9% APR financing or $1,500 cash back on a car. The car price is $30,000. You are borrow the cash to buy the car from a bank at 9% APR.

Which of the following statements is (are) correct?

The payment assuming bank financing is $906.29.

The payment assuming special (car manufacturer) financing is $879.22.

The present value of special financing at the bank interest rate is $27,393.78.

The car buyer should choose special financing, foregoing the cash back.

The car buyer should choose banking financing, receiving the cash back.