1. Acme Inc had a total assets turnover of 1.39, an equity multiplier of 1.75, and net income of $11,000 on $295,000 of sales. Calculate the return on equity:
8.71%
9.07%
9.43%
9.11%
836%
2. If the discount rate is 6.5%, the present value of a cash flow of $5,500 obtained 25 years from today would be worth:
$1,139.26
$1,105.50
$1,065.86
$1,022.13
$1,311.17