1. A firm has no current liabilities. If the long term debt to equity ratio is 1, then its total debt ratio is
2. How much more is a perpetuity of $7,000 worth than an annuity of the same amount for 10 years? Assume a 5% discount rate and cash flows at the end of period.
3. You are saving to buy a house and have $50,000. How long will it take you to save up for the $200,000 downpayment if you save 10,000 per year? Assume an interest rate is 5%.
4. A firm has sales of $5 million, average total assets of $1.6 million, average fixed assets of $1 million, and average current liabilities of $300,000. Given this information, answer the following about the firm's efficiency. Calculate NWC for the company.