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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

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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 b. $7,300,000 C. none of the above d. $7,620,000 Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The profitability index for Project A is Select one: a. 1.27 b. 1.17 C. 1.22 d. 1.12 Corporation A received $10,000 in dividends from Corporation B. How much of the $10,000 must Corporation A include in its taxable income? Select one: a. $2,000 if Corporation A owns between 80% and 100% of Corporation B b. $7,000 if Corporation A owns less than 80% of Corporation B ol $3,000 if Corporation A owns 100% of Corporation B d. $0, because dividends from another corporation are not taxed If the cash flow from operating activities= 112000 and form investment activities = (146000) and from financing activities = 56,000. Then the total cash flow equals:- Select one: a. 314,000 b. (22,000 C. 22,000

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