Bank id 269628 type multiple choice correct as a

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QUESTION:6[QUESTION BANK ID:269628]TYPE:MULTIPLE CHOICECORRECT
As a member of UA Corporation’s financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow?  Sales revenues, each year$42,500Depreciation$10,000Other operating costs $17,000Interest expense$4,000Tax rate35.0%<< HIDE ANSWERS
QUESTION:7[QUESTION BANK ID:269633]TYPE:MULTIPLE CHOICECORRECTD. Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?<< HIDE ANSWERSA
QUESTION:8[QUESTION BANK ID:269623]TYPE:MULTIPLE CHOICECORRECTWarnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.  WACC:10.00%Year0123Cash flows-$950$500$400$300<< HIDE ANSWERS

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