Name: _________________________________________

ID:______________

Question 1:
Assume a company has a 12% fixed asset turnover ratio and net fixed asset of 5000 ,
what is the company’s sales?

Question 2:
Mass company has total sales of 300 million, Asset of 1500 million, An ROE of 20%
and a net profit margin of 5%. What is the firm net income and equity multiplier ratio.

Question 3:
XYZ Company recently reported the following information:

Net income 3000000

ROA 12%

Account payable & accruals 980000

Preferred stock is 40% of equity

Interest expense 360000

XYZ tax rate is 30%. 30% of its total invested capital is debt, and 70% of its total invested capital
is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its
return on invested capital (ROIC).

Question 4:
10% nominal rate.
N= 6 years
Using previous information, find the following:

a. PV of 100 paid at the beginning of each year, semiannually compounding.

b. Rework (a) assuming it is ordinary.
c. FV of 1000 paid each 4 months.
d. PV of 1500 perpetuity.
 e. An initial 1000 compounded for 6 years.

Question 5:
Sara wants to inherit $20000 and invest it at 8% per year.

a. How much could she withdraw at the end of each year of the next five years?
b. If Sara wants to withdraw 2000 at the end of each year, how long would her fund
last?