What is the present value at a 10% discount rate of the depreciation tax shield for a firm in the 35% tax bracket that purchases a $50,000 asset being depreciated straight-line over a 5-year life to a zero salvage value?

A. $10,866 B. $13,268 C. $17,500 D. $37,908

Which of the following costs probably should not be allocated to the investment needed for a new project? A. Increase in accounts receivable B. New warehouse, built for this project C. 25% of the Vice President's salary D. Labor expense for employees in new warehouse

What should be the current price of a stock if the expected dividend is $5, the stock has a required return of 20%, and a constant dividend growth rate of 6%? A. $19.23 B. $25.00 C. $35.71 D. $37.86