What is the cash flow from firm operating activities

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1. What is the cash flow from a firm's operating activities given the following:

The firm paid back $75,000 in loans

The firm paid $20,000 in interest

The firm paid $40,000 in dividends

The firm issued $120,000 in new shares (new equity)

2. Elephant Company common stock has a beta of 1.5. The risk-free rate is 5 percent and the expected market rate of return is 15 percent. Determine the required rate of return on the security. Show work.

a. 25.2% b. 18.4% c. 20.00% d. 16.00%

Reference no: EM131947060

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