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##### FIN 5080 quiz

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Take Test: Quiz 1;Content;Assistive Technology Tips [opens in new window];Instructions;Multiple Attempts;Not allowed. This test can only be taken once.;Force Completion;This test can be saved and resumed later.;Question Completion Status;Question 1. ABC's EBIT is $5 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 30%. The company has 8 million in operating current assets and $6 million operating current liabilities. It has $5 million in net plant and equipment. The after-tax cost of capital (WACC) is 6%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $4 million.?What was the company?s economic value added (EVA)??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $1,200,000.345 then enter as 1200000.35 in the answer box.??????;1 points;Question 2. What is sales revenue, minus cost of goods sold and operating expenses, known as for income statement purposes???... Earnings before Interest and Taxes?... Net Income... Net Profit... Dividends.???;1 points;Question 3. ABC corporation has operating income of $30,240. The company's depreciation expense is $11,663. The company is all equity-financed and it faces a tax rate of 30%. What is the company's net cash flow??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 4. ABC company had a taxable income of $572,761 from operations after all operating costs but before interest charges of $50,894, dividends received of $48,939, dividends paid of $10,000, and income taxes. What is the firm's income tax liability??Hint: use the tax table to compute taxes.?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???.???;1 points;Question 5. The interest payments are tax-deductible.???True?False????;1 points;Question 6. ABC Corporation had $83,546 of taxable income. Compute the tax liability.?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.????????;1 points;Question 7. An investor recently purchased a corporate bond that yields 12.4%. The investor is in the 33% combined federal and state tax bracket. What is the bond's after-tax yield??Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.???????;1 points;Question 8. Donner United has total owner's equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt????... $5,400?... $12,500?... $29,800?... $13,700?... $43,000?.???;1 points;Question 9. Fixed assets includes which of the below???... Land... Inventory... Accounts Receivable... Long-term Debt.???;1 points;Question 10. JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets.?... $4831.31... $5085.29... $5353.25... $5916.00... $5635.00. 5...???;1 points;Question 11. Culligan, Inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $4,300, and long-term debt of $13,000. How much in net working capital??Hint: Net Working Capital = CA - CL??... $700... $10,700... $28,000... $4,300... $5,000.???;1 points;Question 12. ABC company had a taxable income of $588,536 from operations after all operating costs but before interest charges of $50,875, dividends received of $71,564, dividends paid of $10,000, and income taxes. What is the firm's after-tax income??Hint: first use the tax table to compute taxes before calculating the after-tax income.?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 13. During 2007, ABC had sales of $93,054. Cost of goods sold, administrative expenses and selling expenses, and depreciation expenses were $31,629, $7,194, and $7,635, respectively. In addition, the company had an interest expense of $4,406, and a tax rate of 37%. The company paid$2,399 as dividends. If the retained earnings is 2006 were $51,337, what are the retained earnings in 2007??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 14. The dividend payments are tax-deductible.???True?False????;1 points;Question 15. In its most recent financial statements, ABC Inc. reported $46 of net income and $724 of retained earnings. The previous retained earnings were $818. How much in dividends was paid to shareholders during the year??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 16. Corporate Bonds issued by ABC Corporation currently issued 14.6%. Municipal Bonds of equal risk currently yield 6.7%. At what tax rate would an investor be indifferent between these two bonds??Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.???????;1 points;Question 17. ABC company had a taxable income of $219,064 from operations after all operating costs but before interest charges of $58,844, dividends received of $52,373, dividends paid of $5,000, and income taxes. What is the firm's income tax liability??Hint: use the tax table to compute taxes.?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 18. The Herrara Co., had $273,000 in taxable income. Compute the company s income taxes. What is the average tax rate???... 32.86%... 39%... 24.45%... 34.86%.???32.86%;1 points;Question 19. ABC recently reported $40,044 of sales, $15,779of operating costs other than depreciation, and $5,891 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 14% interest rate. How much was the firm's taxable income, or earnings before taxes (EBT)??Hint: Interest rate = Bonds outstanding * interest rate?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 20. ABC Inc. recently reported net income of $3,717 and depreciation of $458. What is the net cash flow??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.???????;1 points;Question 21. Culligan, Inc., has current assets of $22,688, net fixed assets of $145,036, current liabilities of $10,778, and long-term debt of $57,535. What is the shareholders' equity??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????;1 points;Question 22. Based on the following information, Compute the transfer to Retained Earnings for Year 2006. Assume a tax rate of 34%... Year 2006. Sales. $4018. Depreciation. 577. COGS. 1382. Operating Expenses. 328. Interest. 269. Cash. 2107. A/R. 2789. Short-term Notes Payable. 407. Long-term Debt. 7056. Net Fixed Assets. 17669. A/P. 2213. Inventory. 4959. Dividends. 490... Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.????????;1 points;Question 23. ABC's EBIT is $5 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 30%. The company has 8 million in operating current assets and $6 million operating current liabilities. It has $5 million in net plant and equipment. The after-tax cost of capital (WACC) is 6%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $4 million.?What was the company?s free cash flow for the year??Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $1,200,000.345 then enter as 1200000.35 in the answer box.??????;1 points;Question 24. Calculate the shareholders' equity from the given information:. Cash. $2,450. A/R. $6,850. Notes Payable. $382. Long-term Debt. $15,000. Net Fixed Assets. $28,000. A/P. $2,146. Inventory. $2,450.. Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????;1 points;Save and Submit;Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Paper#31083 | Written in 18-Jul-2015

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