solution

1.Suppose Firm A’s net income = $111 and dividends = $54. Compute its retention ratio, or b. Round your answer to FOUR decimal places. For example, if your answer is .2525 or 25.25%, your answer should be 0.2525.

2. Suppose Firm A’s total assets = $127 and total liabilities = $32. Compute the firm’s debt-to-equity ratio. Round your answer to FOUR decimal places. For example, if your answer is .2525 or 25.25%, your answer should be 0.2525

3.Firm A has $12,425 in total sales. The profit margin is 5%. There are 172 shares of stock outstanding, with a price of $3.07 per share. What is the company’s price–earnings ratio? Round your answer to FOUR decimal places. For example, if your answer is .2525 or 25.25%, your answer should be 0.2525.

4.How much will you have in 5 years, if you deposit $1,554 today at an annual interest rate = 5.3%, but compounded quarterly? Round your answer to FOUR decimal places.

5. Suppose you need $47,862 in 11 years. How much do you need to deposit today if the annual interest rate = 4.4%, but compounded monthly? Round your answer to FOUR decimal places.

6.You purchased a house for $500,000. Today, it is worth $761,852. How many years have passed if the price of the house has increased at an annual rate of 2.9 percent? Round your answer to FOUR decimal places.