Question
As assistant to the financial manager of Sliva Corporation, you must estimate the Year 1 cash flow for a project with the following data. What
As assistant to the financial manager of Sliva Corporation, you must estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow?
| Sales revenues | $13,600 |
| Depreciation | $4,000 |
| Other operating costs | $6,000 |
| Tax rate | 40.0% |
| A. $6,340 | ||
| B. | $6,160 | |
| C. | $9,671 | |
| D | $5,579 | |
| E. | $8,481 |
Assume that you are a consultant to Riva Inc., and you have been provided with the following data: D1 = $0.67; P0 = $52.50; and g = 8.00% (constant). What is the cost of equity from retained earnings?
| A. | 12.30% | |
| B. | 9.58% | |
| C. | 11.96% | |
| D. | 12.68% | |
| E. | 9.28% |
Maldini Company has an outstanding issue of perpetual preferred stock with an annual dividend of $4.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell?
| A. $58.46 | ||
| B. | $69.23 | |
| C. | $64.23 | |
| D. | $59.54 | |
| E. | $82.00 |
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Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice
Authors: Mcgraw-Hill
5th Edition
0070099995, 978-0070099999
