ASAP! PLEASE ANSWER ALL QUESTIONS FOR A THUMBS UP RATING, THANK YOU!

1) The Effective Annual Rate (EAR) for not taking the discount with credit terms 2/10 net 30 would be about 45%.

True

False

2)

Find the enterprise valuation cash flow expected for the current year given the following information: Capital expenditures (CAPEX) = $150,000, Depreciation and amortization expenses = $40,000, Earnings before interest and taxes = $400,000, Effective income tax rate = 30%. Prior year balance sheet data: required cash $50,000, surplus cash = $20,000, Accounts receivable = 200,000, Inventories = $300,000, Accounts Payable = $100,000, Accrued Liabilities = $40,000, Short-term Bank Loan = $90,000. Current year balance sheet data: Required cash = $75,000, Surplus cash = $40,000, Accounts receivable = $210,000, Inventories = $360,000, Accounts Payable = $120,000, Accrued Liabilities = $50,000, Short-term Bank Loan = $110,000.

		$105,000
		$65,000
		-$25,000
		$185,000

3) If a call option can be bought for $12 and the stocks market value is $13, its said to be in the money.

True

False