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If Turnpoint Inc. has net income of $300,000, assets of $3,000,000, sales of $2,000,000, and debt of 1,300,000, what is their ROE?

If Crossroads International has $3,000,000 in total sales (75% on credit) and receivables of $500,000, what is their average collection period?

During the last five years (2017-2022), which company (Amazon or Facebook) was managed according to the wealth maximization principle? Explain. What type of data did you collect? Why?

Given the balance sheet and income statement for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. Show your calculations. For each ratio, indicate whether Simmons is better or worse than the industry average. For any two worst ratios, state and explain in 2-3 lines what the managers can do specifically to improve the performance.

Sam has just invested $35,000 for her newborn son in an education IRA. This money will be used for her sons education 18 years from now. She calculates that she will need $200,000 by the time the boy goes to college. What rate of return will Lindsay need in order to achieve this goal?

On January 1, 2018, Dylan bought 100 shares of stock at $1200. On December 31, 2022, he sold the stock for $18 per share. What is his annual rate of return?

You just invested $1,000,000 in a piece of land that is expected to increase in value by 10 percent per year for the next five years. You will then take the proceeds and provide yourself with a 10-year annuity. Assuming a 10 percent interest rate for the annuity, how much will this annuity be?

You wish to retire in 25 years, at which time you want to have accumulated enough money to receive $15,000 per year for 20 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money. What annual contributions to the retirement fund will allow you to receive the $15,000 annually?

Brittany will receive the following payments at the end of the next three years: $5,000, $7,000, and $9,000. Then from the end of the fourth year through the end of the seventh year, she will receive an annuity of $10,000. At a discount rate of 8 percent, what is the present value of all future benefits?

If you borrow $12,000 and are required to pay back the loan in five equal annual installments of 3,000, what is the interest rate associated with the loan?

You just signed an IOU for an amortizing loan of $125,000 at 5% interest rate for 20 years. A new loan is available for 4% interest rate for the same maturity. To obtain this new loan, you must pay the bank $7,500 today. Should you go ahead and take on this new loan?

Ryans parents have been saving $2,000 every year for the last five years. They plan on continuing to invest the same amount annually for the next five years. Ryan is interested in attending a state university which is expected to cost $17,000 per year (annual tuition due at the end of each year). Ryan plans on going to college in five years. If the interest rate is 10 percent, how much more would Ryans parents have to invest each year to have the funds necessary for his education at the end of five years from today?

You invest $10,000 for 10 years at 12 percent. At the end of 10 years, you take the proceeds and invest them for 5 years at 12 percent with quarterly compounding. How much money will you have after 15 years?

John will receive $18,500 per year for the next 25 years as a payment for an app he invented. If a 12 percent rate is applied, should he be willing to sell out his future rights now for $165,000?

Al invests $25,500 in a mint condition U S coin. He expects the coin to increase in value by 10 percent a year for the next five years. After that, he anticipates a 11 percent annual increase for the next three years. What is the projected value of the coin after eight years?

Sharon has been depositing $2,500 in her savings account every December since 2012. Her account earns 6 percent compounded annually. How much will she have on December 31, 2022?

You have been offered a choice of one of the three following payment options: $5,000 now, $1,000 a year for eight years, or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose?

Christine started babysitting on January 1, 2015. Every three months, she deposited $500 in her bank account, which earns 8 percent annually but is compounded quarterly. On December 31, 2019, she used the entire balance in her bank account to invest in an investment at 10 percent annually. How much will she have on December 31, 2021?

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