Joe Pie is considering investing in a Heaven Piza franchise that will require an initial outlay of $100,000. He conducted market research and found that after-tax cash flows on this investment should be about $20,000 a year for the next 7 years. The franchiser stated that Herb will generate a 20 percent rate of return. He currently has his money in a mutual fund which has grown at an average annual rate of 10 percent. He tells the franchiser that money has a time value and the actual rate of return according to his calculations is much less than 20 percent.
a) Do you agree with the franchiser or with Joe?

b) What rate of return is the franchiser using and what method did Heaven Pizza use to calculate it?

c) What rate of return is Joe using and what method did he use?

d) Should Joe make the investment? Explain your answer.

Grace period is a period of time before the credit card company starts charging late fees.truefalse

Eagle sporting goods reported the following data at july ​31, 2016​, with amounts adapted in​ thousands: ​(click the icon to view the income​ statement.) ​(click the icon to view the statement of retained​ earnings.) ​(click the icon to view the balance​ sheet.) 1. compute eagle​'s net working capital. 2. compute eagle​'s current ratio. round to two decimal places. 3. compute eagle​'s debt ratio. round to two decimal places. do these values and ratios look​ strong, weak or​ middle-of-the-road? 1. compute eagle​'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagle​'s current ratio. ​(round answer to two decimal​ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagle​'s debt ratio. ​(round answer to two decimal​ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios look​ strong, weak or​ middle-of-the-road? net working capital is ▾ . this means ▾ current assets exceed current liabilities current liabilities exceed current assets and is a ▾ negative positive sign. eagle​'s current ratio is considered ▾ middle-of-the-road. strong. weak. eagle​'s debt ratio is considered ▾ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.

You own 2,200 shares of deltona hardware. the company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. your required rate of return on this security is 16 percent. ignoring taxes, what is the value of one share of this stock to you today?