1. On February 22, 2009 (the real Washington's Birthday!) you company bought office furniture for thirty five thousand dollars. What would be the dollar value of depreciation your company could take in the following years assuming they use MACRS:

a. 2008

b. 2010.............................................5001.5

c. 2011..............................................7346.6

d. 2016.............................................1211.5

e. 2017...................................................551

2. On Sept 30th, the Disney Corp had a Retained Earnings balance of $7,933 million. One year later it had jumped to $9,557 million. They sold no stock during the year but did pay $342 million in common dividends. Their DPS = $0.51. Given this information:

a. what must have been their net income for the year

b. how manyshares of stock must be outstanding

3. ABC Corp. provides you with the following data: Sales: $500,000; Operating profit: $300,000; Interest expense: $25,000; Net Income: $100,000; Common stock (par): $10,000; Paid-in capital in excess of par: $210,000; total number of common shares outstanding: 10,000.

a. Given the above (and assuming no flotation costs) what was the price of a share of common stock when it was sold? (8 points)

b. Assuming no preferred stock, what was the EPS?