Problem 1: You are trying to save for $140,000 Ferrari. You have $30,000 to invest and your bank pays 4.2% annual interest. How long before you have enough to buy the car?
Problem 2: In a typical month, Curfman Company receives 100 checks totaling $75,000. These are delayed 4 days on average. What is the average daily float?
Problem 3: Calculating Cost of Equity. The Troxel Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $42 a share, what is the company's cost of equity?
Problem 4: Cash Equation. Rag Doll Company has a book net worth of $38,000. Long-term debt is $6,500. Net working capital, other than cash, is $4,300. Fixed assets are $32,500. How much cash does the company have? If current liabilities are $7,200, what are current assets?