CORRECT ANSWER NEEDED ASAP! THANK YOU FOR HELPING

1.

Riverside Inc. needs a state-of-the-art therapeutic equipment which costs $150,000. To maintain the equipment, an annual cost of $20,000 is required for each year over its six-year life. After six years, the equipment becomes useless without any salvage value. The equipment belongs to the Class 10 category (CCA rate is 30%). The company faces a tax rate of 35% and investors demand a discount rate of 15%. What would be the equivalent annual cost (EAC) of this equipment?

Question 13 options:

	-$35,280
	-$43,990
	-$52,636
	-$40,087
	-$17,990

2.

Shawarma King Inc. has 2 million shares outstanding at a market price of $10 per share. Shawarma Wang Inc. has 1.6 million shares outstanding. Each share is traded at $5 per share. Both of firms are all equity financed. Shawarma King Inc. is deciding to acquire Shawarma Wang Inc., since there will be a synergy of $5,000,000. What is the value of Shawarma Wang Inc. to Shawarma King Inc.?

Question 16 options:

	$13 million
	$5 million
	$25 million
	$28 million
	$33 million

3.

During the past year, Captain's Cook found that whenever the sales increased by 25 percent, the restaurant could boost its operating cash flow by 15 percent. What is the degree of operating leverage for the restaurant?

Question 17 options:

	0.6
	1.43
	0.65
	0.40
	1.6

4.

To expand the existing business, Baiwei Inc. is going to raise $12 million through a rights offering. Three rights will be needed to purchase each new share of stock. The company's stock can be purchased at $20 per share and there are 2.5 million shares outstanding in the market. What is the ex-rights price?

Question 19 options:

	18.60
	0.68
	14.40
	13.79
	1.33