FIN 419 ASSIST Perfect Education/fin419assist.cofi FIN 419 ASSIST Perfect Education/fin419assist.cofi | Page 9

9. The two major sources of short-term financing are
10. At the operating breakeven point, ________ equals zero.
Problems (show your work)
(1 Point)
11. Xiao Li wishes to accumulate $50,000 by the end of 10 years by
making equal annual end-of-year deposits over the next 10 years. If
Xiao Li can earn 5 percent on her investments, how much must she
deposit at the end of each year?
12. Hayley makes annual end-of-year payments of $6,260.96 on a
five-year loan with an 8 percent interest rate. The original principal
amount was
13. Hewitt Packing Company has an issue of $1,000 par value bonds
with a 14 percent annual coupon interest rate. The issue has ten
years remaining to the maturity date. Bonds of similar risk are
currently selling to yield a 12 percent rate of return. The current
value of each Hewitt bond is ________.