Problem 1. An investor expects the value of a 1,000 dollar investment to double within 8 years. What is the expected annual rate of growth in the investment.
Problem 2. A firm has a total sebt of 600,000 and equity of 400,000. What is the debt/net worth ratio and the debt to total assets ratio for the firm? please show the calculations
Problem 3. In brief, what happens to the value of money if prices in general fall?
Problem 4. What is the future value of a 10,000 investment after 18 years if the anual rate of interest is 8%? show calculations
Problem 5. A bond has a prinicipal amount of 1,000 an annual interest payment of 100 dollars and a maturity of 10 years. Whats the bondsvalue of price if comparable debt yields 12 percent
Problem 6. A firm has preffered stock outstanding that has 40 dollars of an annual dividend, a 1000 par value and no ,maturity. if comparable yields are 9 percent, what should be the price of the prefered stock.
Problem 7. Your broker recomends that you purchase good mills stock at 30 dollars. the stock pays a 2.20 annual dividend that is expected to grow annually at 8 percent. (the same rate of growth is expected for its per share earnings) if you want to earn 15 percent on your funds, should you purchase this stock. show calculations
Problem 8. Identify three advantages of establishing a corporation rather than a sole proprietorship
Problem 9. What are the main functions of break even analysis
Problem 10. Jeniffer wants to buy a new car four years from now that will cost 15,000. in order to meet this goal, how much money must she save annually, the funds earn an intrest of 6 %