1 question.Sara bought a $15,000 the automobile with 20 percent down and financed the rest
with a four-year loan at 8 percent stated annual interest rate, compounded monthly. What
is his monthly payment if he starts the payment one month after the purchase?
2.question .The Sony Corporation has operating income (EBIT) of $500,000. The company’s
depreciation expense is $200,000. Klaven is 100 percent equity financed, and it faces
a 30 percent tax rate. What is the company’s net income? What is its net cash flow
3 question. A broker has advised you not to invest in oil industry stocks because, in her opinion, they are far too risky. She has shown you evidence of how wildly the prices of oil stocks have fluctuated in the recent past. She demonstrated that the standard deviation of oil stocks is very high relative to most stocks. Do you think the broker’s advice is sound for a risk averse investor like you? Why or why not
4 question Peter Green bought a $10,000 Honda Civic with 10 percent down and financed the rest
with a four-year loan at 8 percent stated annual interest rate, compounded monthly. What
is his monthly payment if he starts the payment one month after the purchase?
5 question Ritter Corporation’s accountants prepared the following financial statements for year-end 20X2. Determine operating cash flow of the company and provide an analysis of the current financial condition of the company
RITTER CORPORATION
Income Statement
19X2
Revenue $400
Expenses 250
Depreciation 50
Net Income $100
Dividends $50
RITTER CORPORATION
Balance Sheets
December 31
20X2 20X1
Assets
Current Assets $150 $100
Net fixed assets 200 100
Total assets $350 $200
Liabilities and Equity
Current liabilities $75 $50
Long-term debt 75 0
Stockholders'' equity 200 150
Total liabilities and equity $350 $200