Solve the following:
Assume the Return on Assets is 6% and the Return on Equity is 15%, compute the following ratios: Equty Multiplier: Debt to Equity Ratio:
Suppose you receive four annual payments of $100.00 beginning next year. Assuming you receive 10% annual interest on your investments, how much money will you have upon receiving the last payment? Answer:
Compute the ask price on a 90 day Treasury Bill based on the ask quote 3.75. Next, compute the bond equivalent yield based on the ask price.
Ask price: Bond Equivalent Yield: