Question 14 5 pts A company's net profit is $30,000. It is planning a capital investment of $10,000. The amount of depreciation charged during the year is $2,000. The additional working capital requirement is estimated as $3,000. The company has a target capital structure of 30 percent debt. The tax rate is 20 percent. The amount of interest paid is $1,000. Number of shares outstanding is 10,000. The FCFF is: $25,800 $25,200 $25,000 $26,000 None of the listed choices is correct. Question 15 5 pts Assume that company A's depreciation has increased by $100. Keeping all else equal, if the tax rate is 40 percent, FCFE and FCFF will remain unchanged. FCFE will increase by $40 and FCFF will increase by $60 FCFE will increase by $100 and FCFF will increase by $100 FCFE will increase by $60 and FCFF will increase by $60 FCFE will increase by $40 and FCFF will increase by $40 Question 18 5 pts A company expects to have an EPS of $1. Number of shares outstanding is 1,000,000. The dividend policy is to pay 40 percent of the earnings as dividends. It has been estimated that the company will require additional investment in fixed assets of $3,000,000 and in working capital of $500,000. The company plans to borrow $2,000,000 to finance the needs. The tax rate is 20 percent. The depreciation will be $600,000 and interest payment will be $200,000. FCFE per share can be calculated (to the nearest $0.01) as: $0.05 $0.12 $0.10 None of the listed choices is correct $0.08 Question 20 5 pts A company has a net profit of $30,000. Its book value of equity at the beginning of the year was $1 million. The required return on equity is 10 percent. The number of shares outstanding is 10,000. The residual income per share (to the nearest $0.01) is: $2.00 None of the listed choices $1.20 ($2.00) $1.80