Reference no: EM13567120
1.Green Leaf Nursery has EBIT of $250,000, interest of $30,000, taxes of $50,000, and depreciation of $80,000. What is the company's operating cash flow?
- $297,200
- $280,000
- $340,000
- $270,000
- $250,000
2.Paper Pro recently purchased a printing machine costing $97,000. The company financed this purchase at 8.25 percent interest, with monthly payments of $2,379.45. How many years will it take the firm to pay off this debt?
- 3.0 years
- 4.0 years
- 4.25 years
- 4.5 years
- 5.0 years
3.Intelligence Research, Inc. will pay a common stock dividend of $1.60 at the end of the year. The required rate of return by common stockholders is 13 percent. The firm has a constant growth rate of nine percent. What is the current price of the stock? (Points : 3)
4.Royal Electric paid a $4 dividend last year. The dividend is expected to grow at a constant rate of six percent over the next four years. Common stockholders require a 13 percent return. What are the values of the dividends for years 1, 2 and 3, respectively? (Points : 3)
$4, $4.5 and $4.8
$4.24, $4.76 and $5.05
$4.24, $4.49, $4.76
$4, $4.50, $5.05
5.The market where new securities are offered is called the _____ market.
- primary
- main
- secondary
- principal
- dealer
6.A sinking fund is an account managed by a bond trustee for the sole purpose of: paying interest payments on a semi-annual basis.
- redeeming bonds early.
- repaying the face value at maturity.
- paying the expenses required to reissue outstanding bonds.
- paying the "balloon payment" at maturity.