) Assume tax rates on single individuals are 10% on taxable income up to $9,275. 15% on income of $9.276 to $37.650 and 25% on income of $37.65 l to S91.150. What is the tax liability for a single individual with $51,000 of taxable income? 2 A) S9,103.50 B) $8,356.25 C) $8,521.25 D) $8,603.50 Which one of these statements is correct? A) EVA measures net profits of all investors after deducting the opportunity cost o B) EVA considers the cost of long-term debt financing but excludes the cost of C) Market value added measures the difference between the total market value of capital equity financing. assets and the total book value of assets. To caluclate total capitalization, market value of shareholder's equity is needed Assume BDS acquired its main supplier, ABC. As a result of the acquisition, BDS finds that its operating profit margin increased but its ROA remained constant. A decrease in which one of these ratios is most apt to be the reason why the ROA did not increase with the increase in the operating profit margin? A) Leverage ratio B) Market-to-book ratio D) Debt burden C) Asset turnover XYZ Corp. has an operating profit margin of 7%, a debt burden of 0.8, and has financed two-thirds of its assets through equity. What asset turnover ratio is necessary to achieve an ROE of30%? A) 3.57 B) 8.04 C) 6.61 D) 4.02 A firm has $600,000 in current assets and $150,000 in current liabilities. Which of the following is correct if it uses cash to pay off S100,000 in accounts payable? A) Net working capital will decrease by $100,000 B) Current ratio will decrease C) Net working capital will increase to $500,000 D) Current ratio will change from 4 to 10 Tom's Shipping had sales last year of $6,000. The cost of goods sold was $2,500, general and administrative expenses were $500, interest expenses were $500, and depreciation was $1,000. Assume the firm's tax rate is 35%. The earnings before interest and tax is additions to net working capital is $600 and capital expenditure is $800) Net income is Free Cash flow is Assume A) 3000, 1975, 975 C) 2000, 975, 1075 B) 2000, 975, 875 D) 3000, 1975, 1075