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1) You need to borrow $3,000 to buy a powerboat

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1) You need to borrow $3,000 to buy a powerboat. The boat dealer offers

(low, low) monthly payments of $99 for 36 months with an additional balloon payment of $300 in the last month. What interest rate is the dealer charging you?

2) List three strategies explain what they are and why they are beneficial

for the income level target for the following taxpayers

3) Suppose an investment grows by 6 percent per year for a period of

10 years. By what total percentage does it increase over this period?

4) Winny's Office Furniture has a contribution margin ratio of 16%. If

fixed costs are $187,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Round to two decimal places.

5) When performing a vertical analysis which income statement item do

you use to determine the cost contribution for each expense category? (What is the denominator?)

6) The Pet Market has $1,000 face value bonds outstanding with 21 years

to maturity, a coupon rate of 6.4 percent, annual interest payments, and a current price of $892. What is the aftertax cost of debt if the combined tax rate is 24 percent?

7) Which of the following statements about the relevant range is true?

-Cost functions outside the relevant range are usually linear

-The relevant range is the normal length of time in a company's accounting period

-Estimates outside the relevant range are useful

-Cost functions within the relevant range are assumed to be linear

8) What is the expected return and standard deviation for the following stock?State ofEconomyProbability of

State of EconomyRate of Return

if State OccursBoom.06 −.06 Normal.74  .07 Recession.20  .18

9) A firm must choose between two investments alternatives, each costing

the same amount. The first alternative generates $35,000 per year for 4 years. The second pays one large lump sum of $157,400 at the end of the fourth year, If the firm can raise the required funds to make the investment at an annual cost of 10%, which alternative should be preferred.

 

10) One year ago, you purchased 100 shares of Best Wings stock at a price

of $38.19 a share. The company pays an annual dividend of $.46 per share. Today, you sold for the shares for $37.92 a share. What is your total percentage return on this investment?

11) If the overall stock market will produce a rate of return of 12.5% what will the beta of the market be?

12) The market price is ?$700 for a 16?-year bond ?($1,000 par? value) that pays 9 percent annual? interest, but makes interest payments on a semiannual basis ?(4.5 percent? semiannually). What is the? bond's yield to? maturity? The? bond's yield to maturity is ?%. ? 

How do I solve this with the financial calculator?

13) A 10,000 bond with 8 semiannual coupons is being sold to Steve three

years and four months before the bond matures. The purchase will yield 6, convertible semiannually to the buyer. Determine the difference between the theoretical price and the quoted price.
a. 26
b. 55
c. 81
d. 133
e. 266