Question
Hi, can you help me to solve these finance problems? Please give explanations. 1Assume the following, Dividends paid in 2017 were $25M. If retained earnings
Hi, can you help me to solve these finance problems?
Please give explanations.
1Assume the following, Dividends paid in 2017 were $25M. If retained earnings were $100M and $120M in 2016 and 2017, respectively, what was net income in 2017?
a)$25M
b)$45M
c)$5M
d)$20M
2.Assume the following in Excel: Cell A1 = Accounts receivable; Cell A2 = Depreciation; Cell B1 = Total assets; Cell B2 = Revenue or Sales. Which of the following formulas would yield the correct common-size value for Accounts receivable?
a)= B1/B2
b)= A2/B2
c)= B2/B1
d)= A1/B1
3.Dweller, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80,000. The future cash inflows from the project are $40,000, $40,000, $30,000 for years 1,2,3 and 4, respectively. Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project?
a) Dweller accepts the projet because it has a positive NPV of over $28,000.
b) Dweller rejects the project because the NPV is less than -$4,000
c) Dweller accepts the project because the NPV is greater than $30,000
d) Dweller rejects the project because the NPV is -$3,021.
4.A company has 120 million shares of stock outstanding with a market price per share of $90.00. The firm's balance sheet shows total assets of $7 BILLION, total liabilities of $5 BILLION and net income of $2,200 million. This firm would have a P/E ratio of ~ and a Market - Book ratio of ~.
a)0.90;72
b)4.91;5.40
c)5.40;4.91
d)72;0.90
5.An investment costs $800,000 today and is expected to produce a one-time inflow at the end of year 6 of $1.5M. The IRR of this project is approximately
a)11%
b)6%
c)37%
d)24%
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