Assume that 5 years from now, you are expected to receive 3450$. If the annual market discount rate is 7%, what is the worth of this investment?

a 2,571

b 2,186

c 2,460

d 2,395

2

Suppose that you have 2500$ to invest into your deposit account for 10 years. The bank offers 8.5% interest per year and it can be received as simple or compounding interest. Based on this, what is the difference between the interest payments on this investment?

a 2,125

b 5,652

c 4,586

d 3,527

3

You are given a partial income statement. According to the table, what is the common size (%) for "trading operating profit"?

a 15.94%

b 16.71%

c 15.07%

d 14.5%

4

Which of the following is the most important goal of a corporate financial manager?

a Increasing the value of the firm's shares.

b Maximizing the profit of the firm.

c Increasing the GDP of the local economy.

d Becoming a public company.

5

The X corp. has 278,000$ taxable income. Based on the table 2.3, answer the following questions.

6

What is the tax liability of X corp?

a 91,670

b 88,510

c 96,120

d 89,100

Notes 2018 91 439 Sales 3 Other revenue Cost of goods sold Distribution expenses Marketing and administration expenses Research and development costs Other trading income Other trading expenses Trading operating profit 311 (46 070) (8 469) (20 003) (1 687) 37 (1 769) 13 789 4 4 3 4 Other operating income Other operating expenses Operating profit 4 2535 (2 572) 13 752 Taxable income Tax Rate TABLE 2.3 Corporate tax rates $ 0- 15% 25 34 39 50,000 50,001 75,000 75,001 100,000 100,001 335,000 335,001- 10,000,000 10,000,001- 15,000,000 15,000,001 18,333,333 18,333,334+ 34 35 38 35