1. If a firm has an aftertax profit margin of 7%, an asset turnover of 4.0 times and no debt, what will be its return on return on Assets?
2. Your cousin will sell you his coffee shop for $30,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $75,000 at the end of the last month. What would your equal monthly payments be?