Fi515 Week 2 Self Quiz

1. Branch Corps correspond assets at the end of last give were $315,000 and its net income after taxes was $22,750. What was its return on descend assets? (Points : 6)         7.22%        7.58%        7.96%        8.36%        8.78% 2. Nikko Corps total common equity at the end of last of course 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 cut out in a chance to buy an rente that turn overs $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        $3,07 5.64        $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 atomic number 18 offered an investment that will pay you $1,000 per year for 10 years.

If you merchant ship 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 c lear the financial keys. Enter the numbers i! nto the flash back keys: 10 into N, 9 into i, and 1000 (a cash inflow) into PMT. Now kettle of fish PVto solve for the present value. The answer is -6,417.6577. Again, this is negative because it represents the amount you would live to pay (cash outflow) today to purchase this annuity. 4. How much would $5,000 due in 50 years be worth today if the ignore 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, answer it on our website: OrderCustomPaper.com

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