Finance Questions

Your grandfather placed $5,000 in a trust fund for you. In 12 years, the fund will be worth $9,500. What is the rate of return on the trust fund (compounded annually)?

You are 20, your child will be born when you are 30, PSU costs $37,000 to attend today, and the Board of Trustees can keep cost increases to +4.5% per year. What will it cost to send your child to college for their first year here?

You are going to receive $2,500 at the end of each year for four years. If the annual discount rate is 6.5%, what is the present value of this income stream?

The _________________ of a corporation include the corporation's name, its intended life, its business purpose, and the number of shares that can be issued

Which of the following statements does NOT accurately describe the relationship between book value and market value?

I. M. Greedy Mortgage Bank offers you a $60,000, eleven-year term loan at a 5% annual interest rate to help you buy a home. What will your annual loan payment be?

You are 20, will retire at 65 with $2,000,000, and earn 8% per year compounded annually. What must you invest ANNUALLY to reach your goal?

Which of the following is NOT a component of the Du Pont identity?

The ___________ tax bracket is the extra tax that would be paid if one more dollar were earned and the ______________ tax bracket is the tax bill divided by taxable income.

You received a $1 savings account earning 7.5% (compounded annually) on your 1st birthday (hint: at the end of your 1st year). How much will you have in the account on your 55th birthday if you don't withdraw any money by then?

Andy promises Opie that he will give Opie $28,000 upon his graduation from college at Mayberry U. How much must Andy invest today to make good on his promise, if Opie is expected to graduate in 16 years, and Andy can earn 7% on his money?

You are choosing between investments offered by two different banks. One promises a return of 10% for three years in simple interest, while the other offers a return of 10% for three years in compound interest. You should:

How much interest expense per year for a $100M loan over four years with straight line repayment?

You need $2,400 to buy a new stereo for your car. If you have $650 to invest at 9% compounded annually, how long will you have to wait to buy the stereo?

For financial planning purposes, we generally define the "short run" as __________, and the "long run" (or "planning horizon") as __________

The adjusting factor in the creation of a common size income statement is

Since the capital intensity ratio is the reciprocal of the ___________ ratio, one could say that it is an alternative way to measure the ability of managers to utilize assets effectively

Using the balance sheet model of the firm, corporate finance may be thought of as the analysis of three primary subject areas. Which of the following groups correctly lists these three areas?

Jo's Market makes a credit sale for $1,000 with terms of 2/10,n/30. The cost of the merchandise is $400. The required journal entry to record the sale and cost of the sale is:

Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchandise purchased using the information below:Invoice cost of merchandise purchases$100,000Purchase discounts received$ 9,000Cost of transportation-in (shipping)$ 500Costs of purchase returns and allowances$ 400