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questions 1,2,&3. please show work. 1. Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is

questions 1,2,&3. please show work. image text in transcribed
1. Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The firm does not have any interest expense. Last year, the firm spent net $40,000 on fixed assets, and it increased net working capital by $10,000. a) What's the EBIT? b) What's the operating cash flow (OCF)? c) What is the Cash flow from assets (CFFA)? 2 2. A Life Insurance is selling a perpetuity contract that pays $1,900 a month. The contract sells for $150,000. a) What's the monthly return this contract? b) What's the APR? c) What's the Effective Annual Return (EAR)? 3. Oscar's Dog House has not profit of $56,000 and sales of 1,000,000. It has total asset of $8,000,000. Its book value / equity is $5,300,000 and it pays out pays out 35% of earnings as dividend a) What's its net profit margin, equity multiplier and total asset turnover ratio? b) What is the return on equity using the DuPont Identity formula

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