Assume that Javier Corporation has operating income of $17,500,000 and it receives $750,000 in interest income and $800,000 in dividend income. Assume that the firm pays a flat 40% income tax rate. What is the firm's income tax liability? Select one: a. $7,396,000 lon b. none of the above C. $7,620,000 Od $7,300,000 ) On an accrual basis income statement, revenues equal cash receipts and expenses equal cash expenditures Select one: True False One of the Disadvantages of the Discounted pay back period is that it ignores cash flows occurring after the payback period. Select one: True False Genny, Inc. received $80,000 in dividends during 2007 from its stock investment in Cary Company. How much of the dividends are excluded from Genny's taxable income? Select one: a. $24,000 b. $56,000 C. $80,000 d. None John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment. One year later, Bill's investment is worth $1,030. Which of the following statements is most correct? Select one: O a. The worth of John's investment cannot be determined with the information given. ob. John's investment must be worth more than $1,030 because of the risk-return tradeoff, given that John's investment was more risky, C. If John's investment is worth less than $1,030, then John was irrational to invest in the risky project. Od. If John's investment is worth more than $1,030, then Bill was irrational to invest in the less risky investment. The number of years it takes to recapture a project's initial outlay from the discounted free cash flows is called as the pay back period Select one: O True False on