Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ii Question 43 Not yet answered Matt is the CFO of Kuchar Consolidations Inc. KCI is considering the replacement of an old machine with one

image text in transcribed
ii Question 43 Not yet answered Matt is the CFO of Kuchar Consolidations Inc. KCI is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate for ordinary income is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Points out of 1 P Flag question Select one: O a. 547,800 O b. $38,000 O c. $45,000 O d. $40,100 Question 44 Not yet of the following alternatives, a company with a considerable amount of excess cash and few investment alternatives would be most likely to answered Points out of 1 P Flag question Select one: O A. declare a stock dividend. O B. split its stock two-for-one. O C.repurchase some of its own shares. O D. choose to issue additional shares of stock. Question 45 Not yet Rickie is CFO of Fowler Inc. Rickie has been asked by his CEO What is the payout ratio for FI? Rickie states the Fl earned $15 million last year and retained $6 million. Fl has 5 million shares outstanding, and the current price of Fl shares is $30 per share. answered Points out of 1 P Flag question Select one: O a. 2.67% O b.4% O c. 40% O d. 60%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions And Markets

Authors: Jeff Madura

10th International Edition

0538482176, 9780538482172

More Books

Students also viewed these Finance questions

Question

Explain the testing process of accounting 1 ?

Answered: 1 week ago