Question: 18 -Main's Store is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000

18-Main's Store is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?

Select one:

a.$46,400

b.$26,600

c.$46,600

d.$26,400

e.$30,000

19-The semiannual, 12-year bonds of IBM are selling at par and have an annual yield of 4.6%. What is the amount of each interest payment if the face value of the bonds is $1,000?

Select one:

a.$22.75

b.$23.27

c.$22.50

d.$23.50

e.$23.00

22-How much will Alex pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning of month? Interest is 3.5% compounded annually.

Select one:

a.$1,991

b.$1,979

c.$1,968

d.$1,985

e.$1,973

23-The Ordo Inc. is preparing to pay its first dividends. It is going to pay $.60, $1.10, and $1.50 a share over the next 3 years, respectively. After that, the company has stated that the annual dividend will be $1.98 per share indefinitely. What is this stock worth to you per share if you demand a 9% rate of return?

Select one:

a.$19.08

b.$18.65

c.$18.22

d.$20.11

e.$19.62

-Just the correct Letter for each question, without any any any explanation at all, please! And I'll put a Like. Butdon't explainthe answers

-Just answer the questions if you're 100% sure about the correct answers, please!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!