Problem 4.05 – Years, Fill out grid
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Solve for the unknown number of years given a grid.
Calculator Preview
Your numbers will vary.
Solve for the unknown number of years given a grid.
Your numbers will vary.
What annual interest rate must be earned on an investment of the present amount to cover the future cost of a college education? They give you what the cost of college will be when your kid enters college and ask you for the annual rate of return you must earn in order to pay for it.
Your numbers will vary.
Given the profit margin, equity multiplier, sales revenue, and total assets for a particular firm… determine the return on equity, ROE.
Your numbers will vary.
How long does it take to double your money? How long does it take to quadruple your money?
Your numbers will vary.
Determine the rate of return on historical coin investments based on their purchase and sale prices. Given the value of a Liberty Seated half dollar (or penny) issued a long time ago which sold for a large sum of money, what was the rate of return?
Your numbers will vary.
Determine the time required to save enough to purchase a Ferrari by investing at a bank that is paying annual interest. How long will it be before you have enough to buy the car?
Your numbers will vary.
Imprudential, Inc. has an obligation to pay a pension liability in the future, and financial analysts want to determine its present value. Calculate the present value of the liability, considering a relevant discount rate. What is the present value of the liability?
Your numbers will vary.
Given the sales, total assets, ROA, and ROE… calculate the profit margin and debt-to-capital ratio.
Your numbers will vary.
You have won a prize in the Centennial Lottery which is to be collected when you are very old. What is the present value of your windfall given an appropriate discount rate?
Your numbers will vary.
What is the future value of a coin collection purchased for face value and appreciating at an annual rate? What will your coin collection be worth by the time you retire?
Your numbers will vary.