Steve Finance Assingment Help With Solution

Steve Finance Assingment Help With Solution

Who has the ultimate control over a corporation?
a. shareholders b. chief executive officer c. chairman of the board d. board of directors

________ 2. An agency problem is most apt to exist in which one of the following situations?
a. an employee asks for a raise and is denied
b. a management decision increases the market value of the firm’s stock
c. a board member resigns for personal reasons
d. a firm’s board decides to increase management bonuses and forego the normal stock dividend
________ 3. The credit default swap (CDS) spread on ABC Corp is 200 basis points. What annual payment does a buyer of credit protection have to pay to insure $1 million of ABC Corp bonds?
a. $200,000.
b. $20,000.
c. $10,000.
d. nothing.
_______ 4. (continued from 3) In the event of default, the recovery rate is 50%. If investors are risk-neutral, what
is the probability of default per year?
a. 1%
b. 10%
c. 4%
d. 8%

________ 5. Redding Industrial Supply had common stock of $6,800 and retained earnings of $4,925 at the
beginning of the year. At the end of the year, the common stock balance is $7,000 and the
retained earnings account balance is $5,498. The net income for the year is $938. What is the
retention ratio? (Hint Retention Ratio = Addition to Retained Earnings/Net Income)
a. 17.59 percent b. 38.91 percent c. 61.09 percent d. 82.41 percent

________ 6. A firm has sales of $26,800, depreciation of $2,200, interest expense of $330, cost of goods sold
of $14,970, other costs of $5,800, and a tax rate of 34 percent. What is the firm’s profit margin?
a. 7.79 percent b. 7.87 percent c. 8.08 percent d. 8.62 percent
________ 7. A firm has sales of $46,700 and inventory of $5,600. Cost of goods sold is 62 percent of sales and
depreciation is 8 percent of sales. What is this firm’s inventory turnover ratio? (Inventory turnover=Cost of
Goods Sold/Inventory)
a. 5.17 b. 4. 3 c. 17 d. -4

________ 8. You currently have $7,200 in your investment account. You can earn an average rate of return of
11.7 percent per year. How long will you have to wait until your account is worth $50,000?
a. 9.47 years b. 11.28 years c. 14.67 years d. 17.51 years

________ 9. Bridgewater Bank pays 4 percent simple interest on its savings accounts. Tidewater Bank pays 4
percent interest, compounded annually on its savings accounts. Four years ago, Lew invested
$3,000 in each bank. What is the difference, if any, in his account balances today?
a. $17.16 b. $29.58 c. $34.06 d. $35.42

________ 10. Steve invested $2,500 this morning with The Branch Bank at 7 percent interest, compounded
annually. After making this investment, he discovered that he could have invested his money with
Tyler Bank and earned 7 percent interest, compounded quarterly. How much additional interest
could Steve have earned over the next 5 years if he had invested with the Tyler Bank instead of
with The Branch Bank?
a. $30.57 b. $48.11 c. $52.60 d. $57.20


How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


  1. (15 points)
  1. You want to endow a scholarship that will pay $10,000 per year forever, starting one year from now. If the school’s endowment discount rate is 7%, what amount must you donate to endow the scholarship? (10 points)


  1. How would your answer change if you endow the scholarship now, but it makes the first award to a student 10 years from today? (5 points)

III. (35 points)

You are trying to decide how much to save for retirement. You have determined that you can save $5,000 per year with the first investment made 1 year from now. You think that you can earn 10% annually on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment.

  1.   How much will you have in your retirement account on the day you retire? (10 points)
  2. If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump-sum need to be? (10 points)
  3. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10% in your retirement) (10 points)
  4. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (5 points)


  1. (20 points, 2.5 points for each question). 3103 Printing, Inc., had sales totaling $40,000,000 in fiscal year 2014. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested.


3103 Printing, Inc.
Year Ended December 31, 2014
Sales $40,000,000
Gross profit margin 80%
Operating profit margin 35%
Net profit margin 8%
Return on total assets (ROA) 16%
Return on equity (ROE) 20%
Total asset turnover 2
Average collection period 62.2 days


Calculate values for the following:
Gross profits
Cost of goods sold
Operating profits
Operating expenses
Earnings available for common stockholders
Total assets
Total common stock equity
Accounts receivable
Extra Credit (5 points).  You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage at a fixed interest rate of 7% per year. You have determined that you can only afford annual mortgage payments of $23,500. The bank agrees to allow you pay this amount each year, yet still borrow $300,000. However, at the end of the mortgage period (in 30 years), you must make a balloon payment; that is you must repay the remaining balance on the mortgage. How much will this balloon payment be?


Product Code :Fin276

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.