Question 26 (1 point) Bartley Foods Corporation has $5 million in sales. Its ROE is 14% and its total assets turnover is 3.5x. The company is 50% equity financed. What is its net income? 01) $700,000 O2) $400,000 O 3) $100,000 O4) $65,000 Question 27 (1 point) A textbook sells for $105 in the U.S. market. Exchange rates are such that 1 British pound () equals $1.87 U.S. dollars. Assume that purchasing power parity holds, what should the textbook sell for in Britain? O 1) 56.15 O2) 85.46 3) 196.35 04) 105.00 Question 28 (1 point) Suppose 1 British pound () equals 1.8690 U.S. dollars and 1 U.S. dollar equals 0.7692 euro. What is the cross exchange rate between the pound and the euro? O 1) 1 - 2.4298 euros O2) 1 - 1.4376 euros 3) 1 - 1.2423 euros O4) 1 - 1.0998 euros Question 29 (1 point) Which of the following statements reflects the limitations of ratio analysis? o 1) "Window dressing" techniques can make statements and ratios look better. 2) Different operating and accounting practices can distort comparisons 3) Sometimes it is hard to tell if a ratio is "good" or "bad", i.e. debt ratio O4) All of the above. Question 30 (1 point) EDS Industries Inc. is considering a project that has the following cash flows: CFO--$6,500, CF1-$2,000, CF2- $3,000, CF3- $3,000, CF4- $1,500. What is the project's