### To do effective ratio analysis

Assignment Help Financial Management
##### Reference no: EM13847910

To do effective ratio analysis, you must ______.

a. be an accountant

b. have a master's degree

c. understand what the ratio numbers mean

d. be a high ranking executive

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 Value of the investment today if appropriate interest rate : if you have an investment that pays you \$4000 two years from today,\$5000 three years from today, and \$6000 four years today. What is the value of the investment today if the appropriate interest rate 6% per year compounded annually? Addition to retained earnings : California Retailing Inc. has sales of \$4,000,000; the firm's cost of goods sold is \$2,500,000; and its total operating expenses are \$600,000. The firm's interest expense is \$250,000, and the corporate tax rate is 40%. The firm paid dividends to pref.. Asset management ratios are broken into two categories : Asset Management Ratios are broken into two categories. Which of the following would be one of the categories? The first financial statement firm produces : The first financial statement a firm produces is the _____. To do effective ratio analysis : To do effective ratio analysis What is the present value of the savings : Your company will generate \$62,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.75 percent, what is the present value of the savings? Common equity would include : Common Equity would include _____. Prepared to make equal annual deposits : You want to have \$81,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year? Fixed-rate mortgage to buy new home : You need a 35-year, fixed-rate mortgage to buy a new home for \$310,000. Your mortgage bank will lend you the money at an APR of 6.05 percent for this 420-month loan. How large will this balloon payment have to be for you to keep your monthly payments..

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