42. Here are 2018 information for Farm Fresh Foods, Incorporated: Revenue 1,350,000 Variable cost 200,000 Rent 50,000 Owns $500,000 worth of equipment which depreciates 10%/year Has a loan of $1,000,000 for which it pays 5% Profits tax rate is 20% Dividend payout ratio is 50% What is the company's EBITD? a) $1,100,000 b) $1,050,000 c) $1,000,000 d) $800,000 e) $400,000 43. The concept of limited liability for U.S. corporations means that: a) If you buy shares of a corporation, you can't lose the money you invested b) If you buy the stock of a company and it becomes bankrupt with outstanding liabilities, you can only lose the money you invested, not more c) Corporations do not need to honor the liabilities incurred by the company's managers d) The corporation pays income tax only once on profits, but shareholders then pay income tax on their dividends 44. How can a firm pay dividends during a period when it made no profit? a) By drawing from its credit line b) By using cash on its balance sheet accumulated from past retained earnings c) By selling an asset and using the proceeds for dividends d) All the above