1. If total assets = $650, fixed assets = $375, current liabilities = $200, equity = $265, long-term debt = $185, and current assets is the only remaining item on the statement of financial position, what is the value of net working capital?
Select one: a. $265 b. $15 c. $35 d. $115 e. $75
2. A firm has an ROE of 27.5% and an ROA of 11%. What is the internal growth rate if the firm has a 55% dividend payout ratio?
Select one: a. 8.81% b. 8.46% c. 7.76% d. 7.07% e. 5.21%
3. You need to borrow $18,000 to buy a truck. The current loan rate is 10% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is the size of your monthly payment?
Select one: a. $374.04 b. $382.45 c. $455.66 d. $381.56 e. $363.39
4. When you were born, you received $100 which you invested at 5.5% interest, compounded annually. That investment is now worth $3,000. How many years have past?
Select one: a. 67 b. 64 c. 82 d. 70 e. 86
5. When evaluating a project in which a firm might invest, the timing but not the size of the cash flows is important. Select one: True False