Financial Math Answers

Ryza borrows Php150,000. At what rate compounded bi-monthly will her interest be if she agrees to pay Php10,000 more at the end of 2 years?

If money is worth 6% compounded bi-monthly, find the present value of Php125,700 for 2 years.

If interest rate is unknown, give the formula for annual interest rate, j.

What is the present value of Php65,000 at 11% compounded annually for 4 years?

John and Jane are in partnership sharing profits and losses in the ratio 3:1. Interest is allowed at 5% on their capital balances and interest on drawings is charged as follows; John Tshs.120,000; Jane Tshs.130,000. The partnership agreement provides salaries to partners for the whole year as follows; John Tshs.1,200,000; Jane Tshs. 960,000. The trial balance as at 30^th June, 2017 is as shown below;

You are provided with the following information taken from the books of    Mackenzie manufacturing company (MMC) for the month ending 31^st        December, 2017.

Consider the following scenario analysis:

Rate of Return

Probability Stocks Bonds

Recession 0.20 -5% 14%

Normal 0.60 15% 8%

Boom 0.20 25% 4%

a. Calculate the expected rate of return and standard deviation for each investment.

b. Calculate coefficient of variance of each investment

c. Which investment would you prefer based on standard deviation and CV?

A) Back Alley Boys, Inc. had sales of $250,000, cost of goods sold of $80,000, depreciation expense of $27,000, and additions to retained earnings of $33,360. The firm paid out $30,000 in dividends. Assume a 34% income tax rate, what is the times interest earned ratio?

B) Using the following data, compute the value of cost of goods sold for Peterson Brewing:

Current liabilities=$340,000 quick ratio=1.8 inventory turnover=4.0 current ratio=3.3

Altman Corporation has interest expenses of $120,000 annually. Altman’s annual sales are $4 million, its tax rate is 25%, and its net profit margin on sales is 10 percent. What is Altman’s TIE?