Question Details

What was its free cash flow 


1.	Other things held constant, which of the following actions would increase the amount of cash on a company- balance sheet?
a.	The company repurchases common stock.
b.	The company pays a dividend.
c.	The company issues new common stock.
d.	The company gives customers more time to pay their bills.
e.	The company purchases a new piece of equipment.
	
2. 	While preparing a pro forma B/S, you have realized that A > L+E, you want to balance the B/S with increased short-term debt. What is (are) the problem(s) you may run into?                                                      
    	a.      Increased debt   
b.      Increased liquidity   
c.      Decreased profit   
d.      Liquidity problem                                                          
    	e.      Both increased debt and liquidity problem
3.	On 12/31/08, Hite Industries reported retained earnings of $525,000 on its balance sheet, and it reported that it had $135,000 of net income during the year.  On its previous balance sheet, at 12/31/07, the company had reported $445,000 of retained earnings.  No shares were repurchased during 2008.  How much in dividends did the firm pay during 2008?
a.	$49,638
b.	$52,250
c.	$55,000
d.	$57,750
e.	$60,638
	4.	Shrives Publishing recently reported $10,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation.  The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%.  During the year, the firm had expenditures on capital expenditure and net working capital that totaled $1,550.  These expenditures were necessary for it to sustain operations and generate future sales and cash flows.  What was its free cash flow?
a.	$1,873
b.	$1,972
c.	$2,076
d.	$2,185
e.	$2,300
	5.	Moose Industries faces the following tax schedule:
	Tax on Base	Percentage on
	Taxable Income			of Bracket		Excess above Base
Up to $50,000	$0	15%
$50,000-$75,000	7,500	25
$75,000-$100,000	13,750	34
$100,000-$335,000	22,250	39
$335,000-$10,000,000	113,900	34
$10,000,000-$15,000,000	3,400,000	35

Last year the company realized $10,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000.  What was the company- net income for the year?
a.	$4,809,874
b.	$5,063,025
c.	$5,329,500
d.	$5,610,000
e.	$5,890,500




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help