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What are the five basis principles of finance Briefly explain them no more than 250 words 10 marks 2 Little Book LTD has total assets of $860000 There are 75000 shares of stock outstanding

What are the five basis principles of finance? Briefly explain them (no more than 250 words). (10 marks) 2. Little Book LTD has total assets of $860,000. There are 75,000 shares of stock outstanding, total book value of $750,000 with a market value of $12 a share. The firm has a profit margin of 6.5% and a total asset turnover of 1.5. a) Calculate the company’s EPS? (6 marks) b) What is the market –to- book ratio? (4 marks) 3. Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? (2 marks) b) How much money do you have in your account today? (4 marks) c) If you wish to have $85,000 now, how much should you have invested 15 years ago? (

May 22 2020 View more View Less

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