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Jacob’s friend, Albert, borrows today with a promise to repay $[loan] in [n] years. If Jacob could earn [rate] percent annually on the any investment he makes today, how much would he be willing to lend Albert today? Hint: How much can Jacob lend Albert today (PV?) so that he can achieve his expected [rate]% return (I/Y) when Albert pays back the $[loan] (FV) [n] years from now (N)? Round to nearest two decimals if needed. Do not type the $ symbol.

An example of agency cost is:

Which of the following is NOT true about treasury stock?

West Railroad Corporation announced that in the year ended Dec 31, 2015, its earnings before taxes amounted to $400,000. Calculate its taxes using the following table. Round your final answer to the nearest dollar. Tax Rate at Bracket Taxable Income 15% $0 to $50,000 25% 50,001 – 75,000 34% 75,001 – 100,000 39% 100,001 – 335,000 34% 335,001 – 10,000,000 35% 10,000,001 – 15,000,000

If Bank A pays interest on a monthly basis and Bank B pays the same interest on a quarterly basis, then investing $1,000 in Bank B will lead to a higher future value than investing the same amount in Bank A.

You plan to borrow $[loan] at a [r]% annual interest rate. The terms require you to amortize the loan with [t] equal end-of-year payments. How much interest will you pay in Year 2 (in dollar amount)?   **Round your answer to the nearest three decimals if needed. Do not type the $ symbol.  

On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm’s accountants should recognize the sale on:

TR Corp. has reported a net income of $[ni] for the year. The company’s share price is $[price], and the company has [shares] shares outstanding. Compute the firm’s price-earnings ratio. Round your final answer to the nearest two decimals if needed.

Bathez Corp. has receivables of $[receivables], inventory of $[inventory], cash of $[cash], and accounts payables of $[payables]. What is the firm’s current ratio? Round your final answer to two decimal places. Do not type the % symbol.

Generally accepted accounting principles are: