Debt ratio-percent discount rate-interest rate


Question1. Our parents are giving you $120 a month for 4 years while you are in college. At 5 percent discount rate, what are these kinds of payments worth to you when you first start college?

Question2. Todd is capable to pay $160 a month for 6 years for a car. When the interest rate is 5.8 percent, how much can Todd afford to borrow to buy a car?

Question3. Eps was $3.50, it book value per share was $22.75, it had 215,500 shares outstanding. When its debt ratio was only 35%, how much debt was outstanding?

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Financial Accounting: Debt ratio-percent discount rate-interest rate
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