The net incremental after tax cash flow

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Reference no: EM132030615

1. The Rent It Company declared a dividend of $.60 a share on October 20th to holders of record on Monday, November 1st. The dividend is payable on December 1st. You purchases 100 shares of Rent It Company stock on Wednesday, October 27th. How much dividend income will you receive on December 1st from Rent It Company?

A. $ 1.50

B. $ 15.00

C. $ 0.00

D. $ 60.00

E. $ 6.00

2. Consider an investment that will be $80,000 with a 4 year life. In the 2 years, the net incremental after tax cash flow is $27,000 a year and the last two years it is $22,000 a year. Find the following if the discount rate is 12%.

1 - NPV

2 - IRR

3 - Payback period

Reference no: EM132030615

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