Question 6 question bank id 269628 type multiple

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QUESTION: 6 [QUESTION BANK ID: 269628] CORRECT 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? TYPE: MULTIPLE CHOICE Sales revenues, each year $42,500 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35.0%
<< HIDE ANSWERS A $16,351
B $17,212 C $18,118 D $19,071 E $20,075 QUESTION: 7 [QUESTION BANK ID: 269611] CORRECT Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D 0 = $0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of common equity assuming no flotation costs? TYPE: MULTIPLE CHOICE
QUESTION: 8 [QUESTION BANK ID: 269634] TYPE: MULTIPLE CHOICE
CORRECT Dentaltech 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 $850,000 Interest rate 10% % Debt 40% Debt outstanding $5,000,000 % Equity 60% Shares outstanding $5,000,000 Tax rate 40% B C D E

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