S The pay back period of an investment that achieves the following cash flow in a row (0,1000,2000,4000) and its initial outlay equals $5000 is:- Select one: O O a. 3 years and 6 months b. 2 years and 5 months c. 2 years and 6 months d. 3 years and 5 months All risk is not equal because Select one: O a. some risk is free while some is not some risk is too small to be considered some can be diversified away and some cannot O b. on 0 d. none of the above C. If the cost of a new production line is $40,000 and the expected free cash flows resulting from this new line are as follows Inflow year 1 12000 Inflow year 2 12000 Inflow year 3 12000 Inflow year 4 12000 And the required rate of return is 10 percent. Then the NPV of the project would be :- Select one: a. 8000 b. (1960) 0 c. (8000) O d. 38,040 e. 1960 Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler's net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore Select one: 0 a. Wheeler purchased treasury stock in 2010 for $2 million O b. Wheeler paid a dividend in 2010 of $5 million c. Wheeler sold common stock during 2010 for $5 million d. Wheeler paid a dividend in 2010 of $2 million on 58. Emery Inc. had $5 million of gross income, operating expenses of $1 million, paid $1 million of interest on borrowing of $10 million, and paid a dividend of $0.50 million. Emery Inc.'s taxable income is Select one: Oa. $2.5 Million O b. $3 Million O c. $4 Million 0 d. $3.5 Million Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods = Sold $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's net profit margin is equal to Select one: 0 a. 35.67%. Ob. 36.67%. O c. 50.00%. 0 d. 25.67%. Which of the following best describes cash flow from financing activities? Select one: O O a. Interest paid, plus dividends paid, plus increase (or minus decrease) in stock, plus increase (or minus decrease) in debt b. Interest expense, minus dividends paid c. Interest income, plus dividend income, minus taxes d. Increase (or minus decrease) in stock, plus increase (or minus decrease) in debt, minus interest paid, minus dividends paid ion All of the following are income statement items EXCEPT Select one: O a. cost of goods sold O b. depreciation expense c. interest expense d. accrued expenses A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash flow from financing activities Select one: O a. -$280,000 ($280,000 flowed out of the firm) O b. +$20,000 ($20,000 flowed into the firm) O c. -$20,000 ($20,000 flowed out of the firm) d. +$280,000 ($280,000 flowed into the firm) The increase in owners' equity for a given period is equal to Select one: O a. positive net cash flow minus dividends c. gross profit minus distributions to shareholders O b. net income minus dividends O d. sales minus dividends on Which of the following categories of owners have unlimited liability? Select one: 0 a. shareholders of a corporation b. sole proprietors C. both A and B d. general partners in a limited partnership The number of days to recapture the project initial outlay period equals 1.2 and the days of the year = 360 Select one: a. 482 days b. None of the above c. 380 days I you were given that the payback O d. 432 days If a corporation has operating income of $10,500,000 and it receives $245,000 in interest income and $312,000 in dividend income, what is the firm's taxable income? Select one: a. $9,838,600 b. $10,812,000 C. $10,838,600 d. $11,057,000 Assume that Javier Corporation has operating income of $17,500,000 and it receives $750,000 in interest income and $800,000 in dividend income. Assume that the firm pays a flat 40% income tax rate. What is the firm's income tax liability? Select one: a. $7,396,000 b. none of the above O C. $7,620,000 d. $7,300,000 Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. Therefore, Select one: a. Company A's cash flow may be higher or lower than Company B's cash flow even though A's net income is higher b. Company A's cash flow is $5,000 more than Company B's cash flow C. Company B is creating less value for its shareholders than Company A d. Company B's accounts receivable must be higher than Company A's accounts receivable 94,000 if the Net Income for 2018 = 48,000.and the retained earnings at the beginning of 2018 = 90,000 and the retained earnings at the end of 2018 = Then the dividends would be :- Select one: a. zero b. 44,000 C. 4000 d. 94,000 Which of the following categories of owners enjoy limited liability? Select one: a. all partners in a limited partnership O O b. only B and C above O c. common shareholders of a corporation d. in a partnership, only the general partners DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the net present value of this project? Select one: a. $87,417 O b. $100,328 O c. $104,089 d. $96,320