Question
18 -Main's Store is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000
18-Main's Store is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?
Select one:
a.$46,400
b.$26,600
c.$46,600
d.$26,400
e.$30,000
19-The semiannual, 12-year bonds of IBM are selling at par and have an annual yield of 4.6%. What is the amount of each interest payment if the face value of the bonds is $1,000?
Select one:
a.$22.75
b.$23.27
c.$22.50
d.$23.50
e.$23.00
22-How much will Alex pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning of month? Interest is 3.5% compounded annually.
Select one:
a.$1,991
b.$1,979
c.$1,968
d.$1,985
e.$1,973
23-The Ordo Inc. is preparing to pay its first dividends. It is going to pay $.60, $1.10, and $1.50 a share over the next 3 years, respectively. After that, the company has stated that the annual dividend will be $1.98 per share indefinitely. What is this stock worth to you per share if you demand a 9% rate of return?
Select one:
a.$19.08
b.$18.65
c.$18.22
d.$20.11
e.$19.62
-Just the correct Letter for each question, without any any any explanation at all, please! And I'll put a Like. Butdon't explainthe answers
-Just answer the questions if you're 100% sure about the correct answers, please!
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