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Moxie, Incorporated, has annual sales of $564,000, current assets of $276,000, and net working capital of $192,000. Assume the firm is operating at full capacity and that all costs, net working capital, and fixed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio will be held constant. If sales are projected to increase by 6 percent next year, what is next year’s pro forma value for current liabilities?

Disturbed, Incorporated, had the following operating results for the past year: sales = $22,627; depreciation = $1,430; interest expense = $1,152; costs = $16,550. The tax rate for the year was 21 percent. What was the company’s operating cash flow?

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $39,000. You feel you can earn an APR of 10.5 percent compounded monthlyand plan to save $485 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?

Which one of the following will decrease the value of a firm’s net working capital?

Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $60?

Assuming an interest rate of 5.5 percent, what is the value of the following cash flows four years from today? Year Cash Flow 1 $ 3,025 2 4,060 3 5,910 4 8,005

Rahul is scheduled to receive annual payments of $3,600 for each of the next 12 years. The discount rate is 8 percent. What is the difference in the present value if these payments are paid at the beginning of each year rather than at the end of each year?

If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity, then the:

You are set to receive an annual payment of $11,500 per year for the next 11 years. Assume the interest rate is 6.4 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year?

A taxable bond has a coupon rate of 6.07 percent and a YTM of 5.69 percent. If an investor has a marginal tax rate of28 percent, what isthe equivalent aftertax yield?