Blog

The Ronnie Company has sales per share of $25.52. If the PS ratio is 1.62 times, what is the stock price?

Your car dealer is willing to lease you a new car for $190 a month for 36 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 6.5 percent, what is the current value of the lease?

Reyes has a dividend yield of 5.4 percent and a total return for the year of 4.8 percent. Which one of the following must be true?

A firm has $856 in inventory, $1,765 in fixed assets, $681 in accounts receivable, $427 in net working capital, and $237 in cash. What is the amount of current liabilities?

Curtis and Company currently has annual sales of $52,600, net fixed assets of $38,900, and total assets of $56,300. The firm is currently operating at 79 percent of capacity. What is the capital intensity ratio at full capacity?

Your insurance agent is trying to sell you an annuity that costs $45,000 today. By buying this annuity, your agent promises that you will receive payments of $380 per month for 15 years. What is the rate of return expressed as an APR on this investment?

Today, Hannah paid a total of $1,176, including accrued interest, to purchase a 20-year bond that has 6 years left until maturity. This price is referred to as the:

The actual interest rate on a loan that is compounded monthly but expressed as an annual rate is referred to as the _____ rate.

Project A has cash flows of $4,000, $3,000, $0, and $3,000 for Years 1 to 4, respectively. Project B has cash flows of $2,000, $3,000, $2,000, and $3,000 for Years 1 to 4, respectively. Which one of the following statements is correct assuming the discount rate is positive? (No calculations needed.)

Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement account. Her employer will provide a match of 50 percent. In other words, her employer will add $80 to the amount Stephanie saves. If both Stephanie and her employer continue to do this and she can earn a monthly interest rate of .45 percent, how much will she have in her retirement account 35 years from now?