QUESTION 21 4 points Save Answer Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation? The firm will have substantially fewer depreciation expenses later in the depreciation timeline. The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV). The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline. The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses. QUESTION 22 4 points Save Answer The Sisyphean Company is considering a new project that will have an annual depreciation expense of $1.875 million. If Sisyphean's marginal corporate tax rate is 40%, then what is the value of the depreciation tax shield on the company's new project? O $1,500,000 $1,000,000 O $750,000 $1,200,000 QUESTION 23 4 points Save Answer The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 13%. If the dividends are expected to grow at a constant rate, what is the expected growth rate of the firm's dividends? O 2.5% 03% 04% O 3.5% QUESTION 21 4 points Save Answer Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation? The firm will have substantially fewer depreciation expenses later in the depreciation timeline. The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV). The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline. The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses. QUESTION 22 4 points Save Answer The Sisyphean Company is considering a new project that will have an annual depreciation expense of $1.875 million. If Sisyphean's marginal corporate tax rate is 40%, then what is the value of the depreciation tax shield on the company's new project? O $1,500,000 $1,000,000 O $750,000 $1,200,000 QUESTION 23 4 points Save Answer The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 13%. If the dividends are expected to grow at a constant rate, what is the expected growth rate of the firm's dividends? O 2.5% 03% 04% O 3.5%