6. In 2021, Company Cs depreciation expense was $940,000. What is the estimated useful life of their PPE. Assume straight-line depreciation with $500,000 salvage value. a. ~11.5 years b. ~12 years c. ~12.5 years d. infinite 7. In 2017, Company B had 100,000 shares outstanding. The stock price at that time was $100 per share. a. The company traded at a discount to book value in 2017 b. The company traded at a premium to book value in 2017 c. The company traded at book value in 2017 8. If all 3 companies happened to earn exactly the same amount of money in 2021, which company would have had the highest ROE? a. Company A b. Company B c. Company C 9. If all 3 companies happened to earn exactly the same amount of money in 2021 and none paid a dividend, which company would have lowest sustainable growth rate according to the sustainable growth theorem? a. Company A b. Company B c. Company C 10. If company A uses U.S. GAAP and company B uses IFRS GAAP what accounting maneuver could company B do to improve earnings and balance sheet that is not available to company A? a. Increase dividend b. Increase profit margins by lowering estimated life of equipment c. Revalue PPE d. Use LIFO (assuming a deflationary environment)

COMPANY A COMPANY B COMPANY C