Finance 515 Essay

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These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/8/2013 | Time Spent: | 09 min , 29 secs | Points Received: | 24 / 30 (80%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 5 | 4 | | | Grade Details - All Questions | Question 1. | Question : | Branch Corp's total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets? | | | Student Answer: | | 7.22% | | | | 7.58% | | | | 7.96% | | | | 8.36% | | | | 8.78% | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 2. | Question : | Nikko Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE? | | | Student Answer: | | 16.87% | | | | 17.75% | | | | 18.69% | | | | 19.67% | | | | 20.66% | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 3. | Question : | You have a chance to buy an annuity that pays $1,000 at the end of each year for three years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? | | | Student Answer: | | $2,697.93 | | | | $2775.79 | | | | | $2921.86 | | | | | $3,075.64 | | | | $3,237.52 | | Instructor Explanation: | The answer represents the present value of the cash flows discounted by 5.5% over three years. | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 4. | Question : | How much would $5,000 due in 50 years be worth today if the discount rate was 7.5%? | | | Student Answer: | |

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