1. If you deposit $17,000 today in an account earning an annual rate of return of 10%, how much interest would be earned in the third year? How much would this amount differ from simple interest?
2. If a firm has a cash cycle of 43 days and an operating cycle of 116 days, what is its average payment period?
3. Assume that a firm has a DFL of 1.25. If sales increase by 20 percent, the firm will experience a 60 percent increase in EPS, and it will have an EBIT of $100,000. What will be the EBIT for this firm if sales do not increase?