Which one of the following will decrease the after tax cost of debt for a firm A. Increase in tax rates B. Increase in the risk-free rate of return C. Decrease in the market price of the debt D. Decrease in a bond's yield-to-maturity Which one of the following indicates that a project should be rejected? Average accounting return that excceds the requirement B. Payback period that is shorter than the requirement period C. Positive net present value D. Profitability index less than 1.0 The Good Life Store has sales of $79,600. The cost of goods sold is $48,200 and the other costs are $18,700. Depreciation is $8,300 and the tax rate is 34 percent. What is the net income? A. $2,904 C. $11,204 B. $8,382 D. $14,660 The primary operating goal of a publicly-owned firm insterested in serving its stockholders should be to A. Maximize its expected total coeporate income. B. Maximize its expoctod EPS C.Minimize the chances of losses D. Maximize the stock price per share over the long nn, which is the stock's intrinsic value Which of the following items is NOT incladed in current assets? payable B. Inventory C. Accounts receivable D. Cash Dividends are best defined as: A. cash payments to shareholders B. cash payments to either boedholders or sharcholders C. cash or stock payments to sharebolders D cash or stock payments to either bondholders or shareholders Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of The firm has 105,000 shares of common stock outstanding at a market price of $22 a 25,000 shares of preferred stock outstanding at a market price of $45 a share. The bond issue has a preferred stock of 8 percent. total face value of $1.5 million and sells at 98 percent of face valie. If the tax rate is 34 percent, the weighd average cost of capital equals All of the following may serve to reduce the coupon rate that would otherwise be reqaired on a bond issued at par, except A. Sinking fand. B. Restrictive covenant. C. Call provision. D Change in rating from Aa to Aa Which of the following would not cause an increase in net operating working capital? A. Inventory increases. Accounts receivable increases. B. C. Short-term investments increase. D. Accounts payables decrease For the year, Movers Uhited has net ineome of S31 800, net new equity of $7, 500, and an adition to relainod eamines $24,200. What is the amount of the dividends paid? A. $100 B. $7,500 D. $15,100 C $7,600