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subject: business finance can you please answer this four questions( must answer all the questions) 5. Fergus Inc. has sales of $47,500, costs of $20,000,

subject: business finance

can you please answer this four questions( must answer all the questions)

5. Fergus Inc. has sales of $47,500, costs of $20,000, depreciation expense of $3,500, and interest expense of $3,000.

If the tax rate is 35%, what is the operating cash flow, or OCF? (Omit $ sign in your response.)

Operating cash flow______.

6. Jorge Corp. of North Bay has 100,000 shares outstanding. BIT is $1 million and interest paid is $200,001. If the corporate tax rate is 34%,

what is Jorge's earnings per share?

7. Use this information to calculate the viability of the project:

Investment Cost $ 730.000

Cash Flows per year $ 200.000

Tax rate 40%

Project Life Length 5 y

CCA Rate 20%

Required return 8%

Hint: Don't forget to calculate PVCAATS

Make sure to indicate whether you accept or reject the project, and why.

8. For 2 bonus marks, show your calculator keys here (CF only) for question 4

Question 4. Chamberlain Corporation is expected to pay the following dividends over the next four years: $1260, $8.60, $760, and $310.

Afterward, the company pledges to maintain a constant 4% growth rate in dividends forever. If the required return on the stock is 12%

what is the current share price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in

your response.)

Current share price_______.

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