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Please help with the following 7 questions. I was able to find the answers for these on the site but these were incorrect. 1.Haroldson Inc.

Please help with the following 7 questions. I was able to find the answers for these on the site but these were incorrect.

1.Haroldson Inc. common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation costs on new stock sales are 5% of the selling price. What is the cost of Haroldsons retained earnings?

A.12.09% B. 11.78% C. 11.45% D. 5.73%

2.capital budgeting project has a net present value of $30,000 and a modified internal rate of return of 15%. The projects required rate of return is 13%. The internal rate of return is: A.greater than $30,000 B. greater than 15% C. between 13% and 15% D.Less than 13%

3.A new project is expected to generate $800,000 in revenues, $250,000 in cash operating expenses, and depreciation expense of $150,000 in each year of its 10-year life. The corporations tax rate is 35%. The project will require an increase in net working capital of $85,000 in year one and a decrease in net working capital of $75,000 in year ten. What is the free cash flow from the project in year one? A.$410,000 B. $375,000 C. $380,000 D. $298,000 4.A local restaurant owner is considering expanding into another rural area. The expansionproject will be financed through a line of credit with City Bank. The administrative costs of obtaining the line of credit are $500, and the interest payments are expected to be $1,000 per month. The new restaurant will occupy an existing building that can be rented for $2,500 per month. The incremental cash flows for the new restaurant include: A.$2,500 per month rent B. $500 administrative costs, $1,000 per month interest payments, $2,500 per month rent C. $1,000 per month interest payments, $2,500 per month rent D. $500 administrative costs, $2,500 per month rent 5.Which of the following should be included in the initial outlay?

A.increased investment in inventory and accounts receivable B.preexisting firm overhead reallocated to the new project C.first year depreciation expense on any new equipment purchased D. taxable gain on the sale of old equipment being replaced

6.The advantages of NPV are all of the following EXCEPT: A.it provides the amount by which positive NPV projects will increase the value of the firm B.it allows the comparison of benefits and costs in a logical manner through the use of time value of money principles C.it recognizes the timing of the benefits resulting from the project D.it can be used as a rough screening device to eliminate those projects whose returns do not materialize until later years

7.Which of the following are included in the terminal cash flow? A.recapture of any working capital increase included in the initial outlay B.the expected salvage value of the asset C.any tax payments or receipts associated with the salvage value of the asset D.all of the above

8.When terminating a project for capital budgeting purposes, the working capital outlay requiredat the initiation of the project will: A.increase the cash flow because it is recaptured B.decrease the cash flow because it is an outlay C.not affect the cash flow D.decrease the cash flow because it is a historical cost

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