Q1:

A C corporation earns $5.70 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $2.00 dividend?

Q2:

Which of the following should be true for an asset to be considered liquid?

A.It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.

B.It pays regular dividends.

C.It is offered for sale on both primary and secondary markets.

D.It can be bought and sold at an organized stock market or bourse.

Q3:

Balance Sheet
Assets			Liabilities
Current Assets			Current Liabilities
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	55		Accounts payable. . . . . . . . . . . . . . . . . . . . .	40
Accounts receivable. . . . . . . . . . . . . . . . . .	25		Notes payable/short term debt. . . . . . . . . . .	7
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . .	15		Total current liabilities. . . . . . . . . . . . . . . . . .	47
Total current assets. . . . . . . . . . . . . . . . . . . . .	95
Long-Term Assets			Long-Term Liabilities
Net property, plant, and equipment. . . . . . . . .	115		Long-term debt. . . . . . . . . . . . . . . . . . . . . . . .	131
Total long-term assets. . . . . . . . . . . . . . . . . . .	115		Total long-term liabilities. . . . . . . . . . . . . . . .	131
			Total liabilities. . . . . . . . . . . . . . . . . . . .	178
			Stockholders' Equity. . . . . . . . . . . . . . . . . .	32
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . .	210		Total liabilities and stockholders' Equity	210

The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?

A. $2.40 B. $1.92 C. $3.35 D. $2.87