1. Profitability and Asset Management RatiosYou are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: net income = $550,000, total debt = $12.5 million, debt ratio = 40%. What is Tikki's ROE for 2008?
2. Debt Management Ratios Zoe's Dog Toys, Inc. reported a debt to equity ratio of 1.70 times at the end of 2008. If the firm's total assets at year-end were $49.9 million, how much of their assets are financed with equity?
3. Interest-on-Interest Consider a $2,600 deposit earning 5 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?
4. Moving Cash Flows What is the value in year 17 of a $1,800 cash flow made in year 7 when the interest rates are 5.2 percent?
5. Interest-on-Interest Consider a $2,600 deposit earning 7 percent interest per year for 6 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?