1. TSI Corporation has forecasted sales of $100,000, operating expenses excluding depreciation and amortization 40,000, depreciation and amortization 20,000, and net income 18,000. The company falls in the 40 percent tax bracket. The amount of interest expense for TSI Corporation is: *

$5,000

$10,000

$25,000

$40,000

None of the above

2. The December 31, 2019 income statement for SAM Inc. reported $2.5 million of net income, and its year-end balance sheet reported $15 million of retained earnings. The Dec. 31, 2018 balance sheet showed $14 million of retained earnings. The total amount dividends (in millions of dollars) paid to shareholders for the year 2019 is: *

$1.5 million

$2.5 million

$3.5 million

$4.5 million

None of the above

3. Carlsberg Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing Debt= $37,000; Sales= $15,000; Total Operating Cost= $4,000. If tax rate is 40% and interest rate is 6%, Find interest expense for the corresponding company. *

$2220

$7000

$2700

$346

None of the above

4. If EBIT equals $100,000 and interest expenses equals $30,000 and Tax rate is 50%. What is the net income of the company. *

$ 45,000

$ 70,000

$ 25,000

$ 35,000

None of the above

5. The dividends paid to shareholders are reported on *

The income statement

The balance sheet

Cash flows statement

Free Cash Flow statement

None of the above