Bank id 269628 type multiple choice correct as a

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QUESTION:6[QUESTION BANK ID:269628]TYPE:MULTIPLE CHOICECORRECTAs 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%A$16,351
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B$17,212C$18,118D$19,071E$20,075
QUESTION:7[QUESTION BANK ID:269611]TYPE:MULTIPLE CHOICECORRECTAssume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0= $0.90; P0= $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of common equity assuming no flotation costs? << HIDE ANSWERS
QUESTION:8[QUESTION BANK ID:269634]TYPE:MULTIPLE CHOICE
CORRECTDentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT$2,000,000 Capital budget$850,000Interest rate10% % Debt40%Debt outstanding$5,000,000 % Equity60%Shares outstanding$5,000,000 Tax rate40%<< HIDE ANSWERS

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