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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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