Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in thebox" at the bottom of table.Assets:3 year Consumer Loans with an average interest rate of 7%Cash Flow (CF)$561,300$766,010$2,702,883$0$0Present Value Factor (PVF)5 Year Commercial Loans with an average interest rate of 10%Cash Flow (CF)$755,299$1,254,503$1,855,631$3,214,131$4,005,543Present Value Factor (PVF)A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format |B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format.935.873.816N/AN/A.909.826.751.683.621

The weighted average duration is a measure used in finance to assess the sensitivity of a portfolio…

Answered: Question 3: Use the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 63BE: Asset Efficiency Ratios Rumsford Inc.s financial statements for 2019 indicate the following account...

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You are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53
Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3% Return on equity: -5% What is the debt ratio?
Given the following information, calculate the duration of assets and liabilities. Assets Amount Rate Duration Cash 90 Loans 800 12% 2 years Treasuries 110 9% 8 years Liabilities and Equity Time deposits 500 6% 1.75 years CDs 425 8% 2.50 years Equity 75
r. Principal s refers to the amount of money borrowed or invested on the origin 4. refers to the amount of time in years the money is borrowed or ted. 5. Dme term MOHurity value 6. Futuie value refers to the amount after t years that the lender receives from orrower on the maturity date. efers to the amount paid or earned for the use of the money. 7. Inferest FOMPLETION: Complete the table by finding the unknowns. IMPLE INTEREST Maturity Value (F) Principal (P) Rate (r) Time (t) Interest (I) 10, 000 1002.5% nonl year 3, 500 20, 000 2 years 10,000 30, 000 30, 000 20% 3 years 48, 000 40, 000 15% 24, 000 64, 000 10% 6 months 2, 500 52, 500
lonic Exploration Company reported these figures for 2018 and 2017: E (Click the icon to view the figures.) Compute the rate of return on total assets for 2018. (Round to two decimals.) Select the formula, then enter the amounts to compute the rate of return on total assets for 2018. (Enter the rate of return as a percent rounded to two decimal places, X.XX%.) Rate of return on total assets %3D Data Table S: Income Statement-partial: 2018 2017 Interest Expense $ 17,800,000 $ 14,500,000 Net Income 18,400,000 14,600,000 Balance Sheet-partial: Dec. 31, 2018 Dec. 31, 2017 Total Assets $ 322,000,000 $ 320,000,000 Print Done
a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Total margin 3.5% Total asset turnover 1.5 Equity multiplier 2.5 Return on equity (ROE) 13.1% b. Calculate and interpret the following ratios: Industry Average Return on assets (ROA) Current ratio 5.2% 2.0 Days cash on hand 22 days Average collection period 19 days Debt ratio 71% Debt-to-equity ratio 2.5 Times interest earned (TIE) ratio 2.6 Fixed asset turnover ratio 1.4 c. Assume that there are 10,000 shares of Green Valley's stock outstanding and that some recently sold for $45 per share. • What is the firm's price/earnings ratio? What is its market/book ratio? (Hint: These ratios are discussed in the supplement to this chapter.)
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 29,800 $ 52,676 69,608 7,901 216,273 Cash $ Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 73,888 91,962 8,459 236,656 30,737 40,577 42,778 3,348 189,960 Total assets $ 436,459 $ 376, 258 $ 307,400 Liabilities and Equity $ 106,505 64, 223 $ 40,577 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 83,695 68,615 162,500 35,708 $ 376, 258 $ 307,400 89,136 162,500 162,500 83,759 60,399 Total liabilities and equity $ 436,459 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?
Calculate the interest rate using following information (Enter your answer in percentage. Round your answer to 2 decimal places): Administrative costs Cost of debt Cost of equity Probability of loss The average reserve requirement Capital policy 2% 4% 5% 0.65% 5% 90% debt capital, 10% equity capital 2
Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debts to assets and gross profit rate to 0 decimal places, e.g.12, and all other answers to 1 decimal place, e.g. 12.6%) Please show your work. 1. Current ratio 2. Debts to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2024, were $35,180) 6. Return on common stockholder's equity (Total common stockholders' equity at November 1, 2024, was $25, 180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026)
For each of the investments below, calculate the rate of return earned over the period. Investment ABCDE Cash Flow During Beginning-of-Period End-of-Period Value Period Value - $400 13,000 4,000 60 1,700 $1,700 140,000 60,000 800 14,500 $800 117,000 46,000 400 12,600
1. Construct a partial amortization schedule showing the last 2 payments. PMT Setting N I/Y P/Y C/Y PV PMT FV Payment NumberPaymentInterest PaidPrincipal RepaidOutstanding Principal 2. Determine the total amount paid to settle the loan. Show work, not just the answer. 3. Determine the total principal repaid. 4. Determine the total amount of interest paid. Show work, not just the answer.
a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio More Info a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done Choose from any list or enter any number in the input fields a Financial Statements Balance Sheet: Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold $ Current Year Preceding Year 15,000 $ 11,000 56,000 64,000 13,000 159,000 132,000 465,000 317,000 29,000 27,000 94,000 82,000 7,000 239,000 89,000

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