In a wildly successful first year in business that started and ended with no required cash, your firm has, net income of $637,000, current assets of $900,000, current liabilities of $659,000, net capital expenditures were $690,000, and depreciation was $460,000.The firm has never financed itself with debt. What is your equity valuation cash flow?

Select one:

a.$648,000

b.$900,000

c.$2,028,000

d.$166,000

Which of the following is not a typical outcome of aChapter 11bankruptcy?

Select one:

a. successful reorganization and the continuation of operations

b. liquidation underChapter 7bankruptcy legislation

c. a government bailout resulting in continued operations at the expenseof operational independence from the government

d. merging the venture with another firm

e.aandb

The Federal Bankruptcy Reform Act was implemented between:

Calculate the Present Value of the 10 percent, five year, $ 8 million seller's loan.

Additional information:Since bank loan will carry a 12 percent interest rate and the seller's loan has subordinate claims, a 14 percent rate is a reasonable approximation of market interest rate. In the present value terms, how much will the Smith and Sons will be receiving for the sale of their Safe-Technologies business under the Leverage Buy Out proposal? show working