1. A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,800 per month for the next three years and then $2,800 per month for the two years after that. If the bank is charging customers 7.25 percent APR, how much would it be willing to lend the business owner?
$10,440
$32,283.96
$140,566.76
$82,486.37
2. Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $705,500, Interest expense = $47,000, and Taxes = $222,500. Bullseye's has no preferred stock outstanding and 210,000 shares of common stock outstanding. What are the 2008 earnings per share?
$2.30
$3.14
$3.36
$2.08