Problem 4.04 – Interest rate, Fill out grid
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Solve for the unknown interest rate in each of the following.
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Solve for the unknown interest rate in each of the following.
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Given earnings per share, EPS, book value per share, and a market/book ratio… solve for the firm’s P/E ratio.
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Solve for the unknown number of years given a grid.
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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.
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Given the profit margin, equity multiplier, sales revenue, and total assets for a particular firm… determine the return on equity, ROE.
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Given the net income, interest expense, tax rate, notes payable, long-term debt, and common equity… find the firm’s ROE and ROIC.
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How long does it take to double your money? How long does it take to quadruple your money?
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Given the sales, ROE, total asset turnover, and common equity… find the net income.
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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?
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Given the reported information (net income, ROA, interest expense, accounts payable)… determine the basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).
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