i believe i have a majority of these right, but not sure and want to check for practice
Stanley Inc. recently reported the following income statement for 2019 (numbers are in millions of dollars): Sales $10,000 Total operating costs 4,000 EBIT $6,000 Interest 500 Earnings before $5,500 tax Taxes (40%) 2.200 Net income (EAT) $3,300 The company forecasts that its sales and total operating costs will both increase by 20% in 2020. The company's interest expense is expected to remain at $500 million, and the tax rate will remain at 40%. The company plans to pay out 40% of its net income as dividends. What is the forecasted addition to retained earnings for 2020? O $2,412 million O $1.608 million $4,020 million $720 million None of the above are correct. Which of the following is likely to decrease the level of interest rates in the economy? Assume that Thouseholds are the primary supplier of capital in the economy and that businesses (corporations) are the primary demander. Households start saving a greater percentage of their income. Assume that households are willing to loan their savings to corporations. O Corporations step up their plans for expansion and increase their demand for capital. The level of inflation is expected to increase. More than one of the above statements is correct. None of the statements above are correct. The Nail Manufacturing Co.'s operating income (EBIT) is $300,000. The company's tax rate is 40 percent, and its operating cash flow (OCF) is $210,000. The company's interest expense is $70,000. Nail's cash flow is (Assume that depreciation is the only non-cash item in the firm's financial statements.) less than or equal to $155,000 O greater than $155,000 but less than or equal to $160,000 greater than $160,000 but less than or equal to $165,000 O greater than $165,000 but less than or equal to $170,000 O greater than $170,000 Preemptive right refers to: The right of shareholders to vote at annual shareholder meetings. The right of shareholders to share proportionately in dividends paid. O The right of shareholders to share proportionately in liquidated assets. The right of shareholders to buy a proportional quantity of any new stock issues sold. O None of the above