Glo expects sales for 2002 to be P2,000,000, resulting in a return on sales of 10%. The dividend payout rate is 60%. Beginning stockholders' equity was P850,000 and current liabilities are projected to be P300,000 at the end of 2002. What are the total equities available if the ratio of long-term debt to stockholders' equity is 60%? * P1,788,000 P1,980,000 P2,046,000 P858,000

Kipling Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be P20,000. Assuming that the project has a internal rate of return of 12%, how much was the initial investment in the project if the present value of annuity of 1 for 8 periods is 4.968 and the present value of 1 is 0.404? * P160,000 P 99,360 P 80,800 P 64,640

The Premiere Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. As a condition of the loan, Premiere is required to maintain a compensating balance of P300,000 in its checking account. The checking account earns interest at an annual rate of 3%. Premiere would otherwise maintain only P100,000 in its checking account for transactional purposes. Premiere's effective interest costs of the loan is * 12.00% 14.25% 16.30% 15.86%

Consider a project that requires cash outflow of P50,000 with a life of eight years and a salvage value of P5,000. Annual before-tax cash inflow amounts to P10,000 assuming a tax rate of 30% and a required rate of return of 8%. Salvage value is ignored in computing depreciation. The project has a payback period of * 5.0 years 5.6 years 6.0 years 6.6 years

If a firm uses external financing as a plug item, has a new capital budget of P2 million, a net income of P3 million, and a plowback ratio of 40%, how much should be raised in external funds? * P 200,000 P 600,000 P 800,000 P1,200,000