Graham Auto Parts has current sales of $42,700, EBIT of $9,700, net income of $6,600, interest expense of $1,360, and dividends paid of $1,925. Assume the net profit margin, debt-equity ratio, and dividend payout ratio are held constant. Sales are expected to increase by $8,000 next year. What is the projected change to retained earnings for next year?

The bond market requires a return of 6.2 percent on the 15-year bonds issued by Mingwei Manufacturing. The 6.2 percent is referred to as the:

Four years ago, Lucas invested $500. Three years ago, Matt invested $600. Today, these two investments are each worth $800. Assume each account continues to earn its respective rate of return and interest is compounded annually. Which one of the following statements is correct concerning these investments?

A stock is expected to maintain a constant dividend growth rate of 4.2 percent indefinitely. If the stock has a dividend yield of 5.5 percent, what is the required return on the stock?

You have a credit card with a balance of $13,600 and an APR of 18 percent compounded monthly. You have been making payments of $260 per month, but you have received a substantial raise and will increase your monthly payments to $335 per month. How many months quicker will you be able to pay off the account?

Which ratio identifies the amount of total assets a firm needs in order to generate $1 in sales?

Assume the total cost of a college education will be $245,000 when your child enters college in 15 years. You presently have $108,000 to invest for this purpose. What annually compounded rate of interest must you earn to cover the cost of your child’s college education?

You just won the $66 million Ultimate Lotto jackpot. Your winnings will be paid as $3,300,000 per year for the next 20 years. If the appropriate interest rate is6.6 percent, what is the value of your windfall?

Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $19,500 per month for the next 6 years with the first payment due today. If the APR is 8.16 percent compounded monthly, what is the value of the payments today?

Your grandparents put $11,000 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.35 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month?