1. You bought an annuity selling at $12,131.06 today that promises to make equal payments at the beginning of each year for the next 6 years (N). If the annuity's appropriate interest rate (I) remains at 11.00% during this time, then the value of the annual annuity payment (PMT) is ...?
a. $3,229.16
b. $6,672.08
c. $2,583.33
d. $3,745.83
2. A firm has total assets of $638,727, current assets of $203,015, current liabilities of $122,008, and total debt of $348,092. What is the debt-equity ratio?
a) 1.03
b) 1.20
c) 1.31