1. As of this morning, your firm had a ledger balance of $3,305 with no outstanding deposits or checks. Today, your firm deposited 9 checks in the amount of $392 each and wrote 13 checks in the amount of $637 each. What is the amount of the disbursement float as of the end of the day?
2. A firm has net income of $239,000 a return on assets of 7 percent and a debt-equity ratio of 4. What is the return on equity?
3. Analyze ROA and ROE and how each one fits into Profitability Ratios.
4. What is financial leverage? What are the benefits and risks associated with financial leverage?