What amounts were collected during the months

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Reference no: EM131989609

1. National, Inc., has a sales of $200,000 for December 2014. It estimates that 10% of these will be cash sales. The remaining are credit sales. About 40% of the company's credit sales are collected during the month in which the sale is made, and the remaining 60% are collected during the following month. What amounts were collected during the months of December 2014 and January 2015 from the credit sales in December 2014?

$54,000 in December 14 and $144,000 in January 2015

$54,000 in December 2014 and $126,000 in January 2015

$108,000 in January 2015 and $72,000 in December 2014.

None of the above

2. Vesper, Inc. is currently an all equity firm that has 100,000 shares of stock outstanding with a market price of $35 a share. The current cost of equity is 12 percent and the tax rate is 34 percent. The firm is considering adding $1 million of debt with a coupon rate of 5 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?

$3,687,220

$3,476,200

$3,277,500

$3,020,404

$2,840,000

Reference no: EM131989609

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