What is the annual percentage rate for this account

Assignment Help Corporate Finance

Reference no: EM133630839 , Length: 15 pages

Financial Management

Question 1:

Instruction

a) Compute and interpret the following financial ratios for EMC Manufacturing Company for the fiscal year 2006 based on the information given above

i. Current ratio                                                         xii. Gross profit margin ratio
ii. Quick ratio                                                           xiii. Operating profit margin ratio
iii. Accounts Receivable turnover                                 xiv Net profit Margin ratio
iv. Average collection period                                       xv Return on investment
v. Inventory turnover                                                xvi Return on equity
vi. Fixed asset turnover                                             xvii Earnings per share
vii. Total assets turnover                                           xviii Price/earnings ratio
viii. Debt ratio                                                          xix Book value per share
ix. Debt -equity ratio                                                 xx Dividend per share
x. Time-interest-earned ratio                                      xxi Dividend payout ratio
xi. Fixed-charge-coverage ratio

b) Based on industry average given above, Evaluate the company strength and weakness with respect to liquidity, asset management, solvency and profitability.

Question 2. A person deposits Birr 10,000 in a savings account that pays 6% compounded semi-annually. Three years later, this person deposits an additional Birr 8,000 in the savings account. Also, at this time, the interest rates changes to 8% compounded quarterly. How much money is in the account 5 years after the original Birr 10,000 is deposited?

Question 3. Birr 2000 is deposited in an account. After one year of monthly compounding, the balance in the account is Birr 2,166. What is the annual percentage rate for this account?

Question 4. A person deposits Birr 200 a month for four years in to an account that pays 7% compounded monthly. After the four years, the person leaves the account untouched for an additional six years. What is the balance after the 10 year period?

Question 5. Mrs. X has a saving goal of Birr 25,000 which she would like to reach 10 years from now. During the first five years she is financially able to deposit only Birr 100 each month into the savings account. What must her monthly deposits over the last five years be if she is to reach the goal? The account pays 12% interest compounded monthly.

Question 6. What is the cash value of a car that can be bought for Birr 200 down payment and Birr 82 a month for 18 months, if money is worth 12% interest compounded monthly?

Question 7. Suppose you borrow Birr 5000 from a bank and agree to repay the loan in five equal installment including all interests due. The banks interest charges are 5% compounded annually. How much should each annual payment be in order to retire the debt including the interest in 5 years?

Attachment:- Financial Management Assignment.rar

Reference no: EM133630839

Questions Cloud

What is the objective of your earnings management paper : What is the objective of your Earnings Management Paper? How is your Earnings Management Paper structured to support the objective?

Organisms that cause parasitic disease : What are the types of organisms that can cause parasitic diseases in the human being?

How does the song reflect the theme of greasy lake : How does the song reflect the theme of Greasy Lake? The song and the story share a setting. What does the lake represent in both the song and the story

How would you approach team building and team dynamics : How would you approach team building, team dynamics, and team outcomes in the workplace from a Christian Worldview perspective?

What is the annual percentage rate for this account : What is the cash value of a car that can be bought for Birr 200 down payment and Birr 82 a month for 18 months, if money is worth 12% interest compounded

Can and how does the entrant succeed : Play and analyze the game. Can, and how does, the entrant succeed? Is the incumbent ever in control of this game? What is the Nash equilibrium?

What are nursing-sensitive quality indicators : What is the National Database of Nursing-Sensitive Quality Indicators? What are nursing-sensitive quality indicators?

What is the organizations mission and vision : What is the organization's mission and vision? How did organizational culture play a role in the examples you provided?

What did you learn about yourself : How is this assessment and its results valuable? What did you learn about yourself? How and where will you apply these results in your professional life?

User Account

All Pages