What was its interest expense

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Reference no: EM132963636

Questions -

Q1) Based on the fundamental valuation from the discounted free cash flow, which of the following will increase the fundamental value of a firm?

A. An increase in dividend payments

B. A decrease in long-term growth of free cash flow

C. A decrease in corporate effective tax rate

D. An increase in the required returns that bondholders and shareholders demand from the firm.

E. A decrease in the growth of future free cash flows

Q2) During 2020, one of Xerox Corp financial statements stated its operating income during 2020 was $48,000. Its net income was $28,756 and its average tax rate is 35%. Assuming there is no interest income, what was its interest expense during 2020?

A. $19,244

B. $3,760

C. $7,288

D. $31,200

E. $12,509

Q3) A company's top managers decided to split the company into two separate companies and since the split, both companies have completed massive employees' layoff, especially senior employees, and both companies were able to pay significantly less corporate taxes from restructuring and impairment of intangible charges. Both new companies' stock prices have increased significantly after the split. Briefly contrast the top managers' action based on both the investing stakeholders versus the non-investing stakeholders' interests and business ethics.

Reference no: EM132963636

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