question 17

13. What is the change in cash for a firm with the following: $15,000 cash flow Tror operations, S1,600 cash used for new investment, a reduction in the level of deb $2,000, $1,000 in cash dividends, and $200 in depreciation expense. A. 5,400 B. 10,400 C. 6,000 D. 5,000 16. Calculate the EBIT for a firm with S5 million total revenues, $3.5 million cost of goods sold, $500,000 depreciation expense, and S120,000 interest expense. A. 1,000,000 B. 1,500,000 C. 2,000,000 D. 1,250,000 17. Which of the following statements is true for a corporation with $1 million marker value of equity, S3 million market value of assets, and 1,000 shares of outstanding stock? A. Market value of liabilities exceeds book value of liabilities. B. Market value of liabilities equals S2 million. C. Book value per share equals $1,000. D. Market value per share equals $2,000. 8. Suppose Dee's just acquired the assets of Flo's Flowers. The book value of Flo's Flowers assets was $68,000 but Dee's paid a total (Purchase price) of S75,000. Wha is the goodwill? A. 1,000 B. 7,000 C. 5,000 D. 2,000 - After-tax operating income for a leveraged firm is defined as