1.

From the list below determine how much is the net operating working capital (NOWC):

Cash	$400
Capital	5,000
Accounts Payable	40
Accounts Receivable	30
Sales	2,000
Tax Payable	120
Salaries Payable	65
Salaries Expense	1,000
Inventory	50
Dividends	44

2. ABC Company needs $2 million for buying a new heavy-duty equipment. How much can be paid out as dividends if net income is $1,550,000 and target capital structure D/E = 1/3?

3.

You were lucky to find an investment that provide a return of 6%. Because this rate is acceptable to you, you decided to invest $10,000 on a five-year term. How much will you earn interest?

Select one:

4. Assume ABC Company is expected to pay a $1.00 dividend in one year. If the dividend is expected to grow at 3% per year and the required return is 22%, what is the price?