6. Suppose that a firm has a retention rate of 45 percent, net income of $18 million, and 88 million shares outstanding.

What would be the dividend per share paid out on the company's stock?

A. $.1175

B. $.1125

C. $.1252

D. $.1315

9. The net cash flow from a firm in February, March, and April is $4.6 million, $1.7 million, and $1.9 million, respectively.

What's the cumulative cash flow for April?

A. $4.8 million

B. $6.9 million

C. $3.9 million

D. $5.1 million

16. Suppose that Fortunate Ventures, Inc.'s, common shares are currently selling for $23 a share with 7 million shares outstanding. The firm also has 12,000 bonds outstanding, which are selling at 96 percent of par. If Fortunate Ventures was considering an active change to its capital structure to have a D/E ratio of 0.5, which type of security (stock or bonds) would the firm need to sell to accomplish this, and how much would it have to sell?

A. Stock; $44,698,000

B. Bonds; $68,980,000

C. Stock; $38,460,000

D. Bonds; $54,325,000

17. Happy Clowns, Inc., has a cash balance of $445,000, accounts payable of $234,000, inventory of $144,000, accounts receivable of $411,000, notes payable of $124,000, and accrued wages and taxes of $88,000.

How much net working capital does the company need to fund?

A. $387,000

B. $446,000

C. $554,000

D. $614,000

20. A firm has the following sale figures:

l Year 2011: $4.6 million; l Year 2012: $5.1 million l Year 2013: $4.2 million l Year 2014: $3.8 million l Year 2015: $4.3 million

What would the forecast for the next year's sales be using the average approach?

A. $5.4 million B. $3.2 million C. $4.4 million

D. $5.1 million