Author: Anonymous

A company has $1,329 in inventory, $4,764 in net fixed assets, $622 in accounts receivable, $270 in cash, $570 in accounts payable, and $5,359 in equity. What is the company’s long-term debt?

Gehle Corporation pays a constant annual dividend of $.63 per share. The stock is priced at $5.38 per share. If your required rate of return is 11 percent per year, should you buy the stock? Why or why not?

Kerch Company had beginning net fixed assets of $216,558, ending net fixed assets of $211,722, and depreciation of $40,471. During the year, the company sold fixed assets with a book value of $8,038. How much did the company purchase in new fixed assets?

Zeng Systems is currently operating at full capacity. The firm, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a net profit margin of 5 percent. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 3 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

A Procrustes approach to financial planning is based on:

Assume your mother invested a lump sum 28 years ago at 4.05 percent interest, compounded annually. Today, she gave you the proceeds of that investment, totaling $48,613.24. How much did your mother originally invest?

Which one of the following grants an individual the right to vote on behalf of a shareholder?

Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $465 per month for 15 years. What is the rate of return expressed as an APR on this investment?

Bob has been investing $2,750 in stock at the end of every year for the past 12 years. If the account is currently worth $64,800, what was his annual return on this investment?

Four years ago, Lucas invested $500. Three years ago, Matt invested $600. Today, these two investments are each worth $800. Assume each account continues to earn its respective rate of return and interest is compounded annually. Which one of the following statements is correct concerning these investments?