1. Andrade Corp has debt of $2,835,000, total assets of $5,178,000, sales of $8,234,100, and net income of $812,300. What is the firm’s return on equity (ROE)?
7.1%
34.7%
28.1%
43.2%
2. Which one of the following statements about time value of money is NOT true?
For a given interest rate, the longer the time period, the lower the present value of a future cash flow
A 10% compounding rate results in greater future value than a 10% simple rate.
A dollar today is worth more than a dollar to be received in the future.
For a given time period, the higher the discount rate, the greater the present value of a future cash flow.