financequiz3 - 1. Question: Shop-Til-You-Drop Inc. recently...

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1. Question: Shop-Til-You-Drop Inc. recently reported net income of $5.2 million and depreciation of $600,000. What is was net cash flow? Assume it has no amortization expense.
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Your Answer: $5,40 0,000 $5,60 0,000 $5,80 0,000 C ORR ECT $6,00 0,000 $6,20 0,000
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Instructor Explanation: Instructor Exp: Net Income + non cash charges = Cash Flow …. Depreciation is a non-cash charge: $5,200,000 + 600,000 = $5,800,000 Points Received: 4 of 4 Comments: 2. Question: Superior Medical System's 2005 balance sheet showed total common equity of $2,050,000. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. By how much did the firm's market value and book value per share differ?
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Your Answer: $36.7 5 C ORR ECT $38.2 5 $39.5 0 $40.2 5 $51.0 0
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Instructor Explanation: Balance sheet: market value vs. book value Shares Outstanding 100,000 Price per share $57.25 Total common equity $2,050,000 Book value per share $20.50 Difference between book and market value $36.75 Points Received: 4 of 4 Comments: 3. Question: Madison Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7%
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This note was uploaded on 08/06/2011 for the course MT 217 taught by Professor Finance during the Spring '11 term at Kaplan University.

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financequiz3 - 1. Question: Shop-Til-You-Drop Inc. recently...

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