In words, what does a return on equity of 0.30 mean?
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Given the following income statement data, calculate the ope…
Given the following income statement data, calculate the operating cash flow: net sales = $4,200, cost of goods sold = $2,450, operating expenses = $580, depreciation = $410, interest expense = $200, tax rate = 35%.
Your car dealer is willing to make a loan to you for a new c…
Your car dealer is willing to make a loan to you for a new car. The loan terms are monthly payments of $400 for 5 years. The payments are due on the first day of each month starting with the day you sign up for the loan. If your cost of money is 5% APR, how much can you borrow?
An insurance company promises to pay Jane $1 million on her…
An insurance company promises to pay Jane $1 million on her 65th birthday in return for a one-time payment of $150,000 today (Jane just turned 30). At what rate of interest would Jane be indifferent between accepting the company’s offer and investing the premium on her own?
You need to borrow $23,000 to buy a truck. The current state…
You need to borrow $23,000 to buy a truck. The current stated annual loan rate is 7.9% compounded monthly and you want to pay the loan off in equal monthly payments over 6 years. What is the size of your monthly payment?
A loan where the borrower pays interest each period and repa…
A loan where the borrower pays interest each period and repays ALL of the principal of the loan over time is called a(n) ________ loan.
Fresh out of college, you are negotiating with your prospect…
Fresh out of college, you are negotiating with your prospective new employer. They offer you a signing bonus of $100,000 today or a lump sum payment of $130,000 three years from now. If you can earn 8% on your invested funds, which of the following is true?
The sale of equity and debt securities between investors occ…
The sale of equity and debt securities between investors occurs in the:
Which statement shows a trend by reporting an item’s value i…
Which statement shows a trend by reporting an item’s value in relation to the value of the same item in a previous year?
You have $800 that you would like to invest. You have 2 choi…
You have $800 that you would like to invest. You have 2 choices: Savings account A which earns 8% per year, compounded annually, or savings account B which earns 7.80% per year, compounded quarterly. Which would you choose and why?