1. Sara bought a $15,000 the automobile with 20 percent down and financed the rest with a four-year loan at 8 percent stated annual interest rate, compounded monthly. What is his monthly payment if he starts the payment one month after the purchase?
2. Sony Corporation has operating income (EBIT) of $500,000. The company's depreciation expense is $200,000. Klaven is 100 percent equity financed, and it faces a 30 percent tax rate. What is the company's net income? What is its net cash flow
3 A broker has advised you not to invest in oil industry stocks because, in her opinion, they are far too risky. She has shown you evidence of how wildly the prices of oil stocks have fluctuated in the recent past. She demonstrated that the standard deviation of oil stocks is very high relative to most stocks. Do you think the broker's advice is sound for a risk averse investor like you? Why or why not
4 Peter Green bought a $10,000 Honda Civic with 10 percent down and financed the rest with a four-year loan at 8 percent stated annual interest rate, compounded monthly. What is his monthly payment if he starts the payment one month after the purchase?