Questions from Corporate Finance


Q: Approximately what interest rate is earned when an investment doubles over 12

Approximately what interest rate is earned when an investment doubles over 12 years?

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Q: Determine the interest rate earned on a $1,400 deposit

Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year.

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Q: Determine the interest rate earned on a $2,300 deposit

Determine the interest rate earned on a $2,300 deposit when $2,900 is paid back in one year.

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Q: Suppose a firm has had the historic sales figures shown as follows

Suppose a firm has had the historic sales figures shown as follows. What would be the forecast for next year’s sales using the average approach?

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Q: How long will it take $2,000 to reach $

How long will it take $2,000 to reach $5,000 when it grows at 10 percent per year?

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Q: JP Morgan Chase Co. (JPM) has earnings per share

JP Morgan Chase Co. (JPM) has earnings per share of $3.53 and a P/E ratio of 13.81. What is the price of the stock?

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Q: Consider a $2,000 deposit earning 8 percent interest per

Consider a $2,000 deposit earning 8 percent interest per year for five years. What is the future value, and how much total interest is earned on the original deposit vs. how much is interest earned on...

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Q: Consider a $5,000 deposit earning 10 percent interest per

Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future value, how much total interest is earned on the original deposit, and how much is interest earned on int...

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Q: What would be more valuable, receiving $500 today or receiving

What would be more valuable, receiving $500 today or receiving $625 in three years if interest rates are 7 percent? Why?

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Q: Which cash flow would you rather pay, $425 today or

Which cash flow would you rather pay, $425 today or $500 in two years if interest rates are 10 percent? Why?

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