Question 6 (1 point) Alpha Resources Inc. has sales revenue of $800,000, operating costs of $575,000, and depreciation expense of $45,000. The company has $400,000 of outstanding bonds that pay 5% interest and it faces an average state-plus-federal tax rate of 40%, what is its net income? OA) $96,000 B) $214,500 OC) $219,000 OD) $243,750 E) $314,250 The Seattle Corporation has been presented with an investment opportunity that will yield end of year cash flows of $30,000 in Year 1, $35,000 per year in Years 2 and 3, $45,000 in Year 4, and $50,000 in Year 5. This investment will cost the firm $135,000 today, and the firm's cost of capital is 10 percent. What is the NPV for this investment? OA) ($ 5,724) OB) ($ 2,047) C) $ 1,569 D) $5,341 E) $ 9,276 Beta is a measure of A) risk in a well-diversified portfolio B) the extent to which the stock's return moves up and down with the market C) systematic risk D) all of the above Which of the following is true about the WACC? A) The WACC is the appropriate discount rate for all new projects with the same risk level as the existing assets of the firm B) The optimal capital structure is the one that minimizes the WACC C) The value of the firm will be maximized when the WACC is minimized D) Since discount rates and values move in the same direction, minimizing t WACC will minimize the value of the firm's cash flows E) a, b, and c are true