31. A Company has arranged a $10,000,000 credit line with a Bank. The Bank will charge the Company C 5% annually for funds that are drawn down and 0.5% for any unused credit line. The Company borrows $5,000,000 for a full year. How much does it pay the Bank for that year? a) $550,000 b) $525,000 c) $300,000 d) $275,000 32. The requirement that banks must have a minimum amount of equity as a percentage of assets containing default risk is known as: a) reserve requirements b) capital requirements c) liquidity requirements d) all of these 33. The Book Value of a company equals: a) the value of its assets less its cash b) the value of its assets according to their purchase price c) the market value of a share of its stock multiplied by the number of shares d) the amount of equity invested by the original owners plus subsequent net share purchases by the original and new owners plus sum of net retained earnings e) b&d 34. A company recorded the following in 2019: Revenue 50,000 Operating Expenses 22,000 Spending on new equipment 4,000 Interest paid 2,000 Tax 5,000 I Dividends distributed 1,000 What were its after-tax profits for the year? a) 16,000 b) 17,000 c) 20,000 d) 21,000 e) 23,000