A company is obligated to pay its creditors $6,505 at the end of the year. If the value of the company’s assets equals $6,367 at that time, what is the value of shareholders’ equity?

The bond has a coupon rate of 6.29 percent, it makes semiannual payments, and there are 5 months to the next coupon payment. The bond has a clean price of $995 and the par value is $1,000. What is the invoice price?

A company has total equity of $1,905, net working capital of $155, long-term debt of $900, and current liabilities of $930. What is the company’s net fixed assets?

You just paid $465,000 for a policy that will pay you and your heirs $19,100 per year forever with the first payment in one year. What rate of return are you earning on this policy?

A relative will support your education by paying you $500 a month for 50 months. If you can earn 7 percent on your money, what is this gift worth to you today?

Mariota Industries has sales of $310,720 and costs of $155,010. The company paid $24,710 in interest and $12,700 in dividends. It also increased retained earnings by $64,010 during the year. If the company’s depreciation was $15,680, what was its average tax rate?

Erna Company is expected to pay a dividend of $2.53 one year from today and $2.68 two years from today. The company’s sales in two years are expected to be $15,750,000. The company has a PS ratio of 1.71 times, and 524,500 shares outstanding. If the required return on the company’s stock is 11 percent, what is the current stock price?

A company has net working capital of $2,047, current assets of $6,375, equity of $22,035, and long-term debt of $10,475. What is the company’s net fixed assets?

You purchase a bond with an invoice price of $1,033. The bond has a coupon rate of 5.57 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?

An investor purchases a zero coupon bond with 17 years to maturity at a price of$393.51. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding.