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Chadron Motors has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $94,000. The tax rate is 21 percent and the
Chadron Motors has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $94,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow?
- A. $155,831
- B. $168,480
- C. $121,220
- D. $14,831
- E. $108,831
One year ago, you purchased a 5.6 percent coupon bond with a face value of $1,000 when it was selling for 98.6 percent of par. Today, you sold this bond for 101.2 percent of par. What is your total dollar return on this investment?
- A. $74
- B. $60
- C. $64
- D. $82
- E. $86
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