Fi515 Week 2 Self Quiz

1. Branch Corps correspond assets at the end of last move were $315,000 and its net income after taxes was $22,750. What was its return on gibe assets? (Points : 6)         7.22%        7.58%        7.96%        8.36%        8.78% 2. Nikko Corps total common equity at the end of last take to the woods of instruction was $305,000 and its net income after taxes was $60,000. What was its ROE(Return on Equity)? (Points : 6)         16.87%        17.75%        18.69%        19.67%        20.66%  Formula utilise in Return on Equity calculation is: 3. You cheque in a chance to buy an rente that contains $1,000 at the end of severally year for three years. You could obtain 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? (Points : 6)         $2,697.93        $2775.79       $2,921.86        $3, 075.64        $3,237.52 mystify Mode N3 I/YR5.5% PMT$1,000 FV$0.00 PV Therefore, to receive $1,000 at the stolon of each year for 3 years at 5.5%, the unobjectionable value you should pay is $2,697.93 HP 12C Suppose that you argon offered an investment that will pay you $1,000 per year for 10 years.

If you domiciliate earn a rate of 9% per year on alike(p) investments, how much should you be willing to pay for this annuity? In this case we need to solve for the present value of this annuity since that is the amount that you would be willing to pay today. Press f X><Yto clear the fin ancial keys. Enter the numbers into the st! amp down keys: 10 into N, 9 into i, and 1000 (a cash inflow) into PMT. Now throng PVto solve for the present value. The answer is -6,417.6577. Again, this is negative because it represents the amount you would pay to pay (cash outflow) today to purchase this annuity. 4. How much would $5,000 due in 50 years be worth today if the cornerstone rate was 7.5%? (Points : 6)         $109.51        $115.27        $121.34        $127.72        $134.45 I...If you want to get a full essay, preen it on our website: OrderCustomPaper.com

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