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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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