ACY FIVE Limited ("ACY FIVE") issued a 5-year note payable of $100,000 with an annual interest rate of 5% in the prior year. In the current year, ACY FIVE plans to acquire an office equipment costing $50,000 with an estimated useful life of 5 years. The company would fully settle the purchase price with its surplus cash on hand. Question If this equipment is acquired during the current year, how would this affect its "free cash flow to equity" this year? Select one: O A. "Free cash flow to equity" shall decrease. This is because depreciation expense reduces the profit. O B. "Free cash flow to equity" shall decrease. This is because the purchase price would be fully paid. O C. No impact on "free cash flow to equity". This is because the purchase price would be fully paid. O D. No impact on "free cash flow to equity". This is because depreciation expense is a non-cash expense. ACY FIVE Limited ("ACY FIVE") issued a 5-year note payable of $100,000 with an annual interest rate of 5% in the prior year. In the current year, ACY FIVE plans to acquire an office equipment costing $50,000 with an estimated useful life of 5 years. The company would fully settle the purchase price with its surplus cash on hand. Question If this equipment is acquired during the current year, how would this affect its "times interest earned" this year? Select one: O A. "Times interest earned" shall increase. This is because depreciation expense reduces the profit. O B. No impact on "times interest earned". This is because the purchase price would be fully paid. O C. "Times interest earned" shall decrease. This is because depreciation expense reduces the profit. O D. No impact on "times interest earned". This is because depreciation expense is a non-cash expense. ACY FOUR Limited ("ACY FOUR") had 2,000 ordinary shares ($1 par value each), and 1,000 preference shares ($1 par value each) issued. No new shares were issued in the current year. Each preference share can be converted into 1 ordinary share at the discretion of the holders of the preference shares. Cash dividends of $10 shall be paid to each preference share every year. In the current year, cash dividends of $12,000 in total were declared and paid to the all the shareholders. Net income of $130,000 was earned in the year. Retained earnings were $500,000 at the beginning of the year. Question Which one of below is the basic earnings per share? Select one: O A. $60 B. $59 O C. $43.3 O D. $65 ACY FOUR Limited ("ACY FOUR") had 2,000 ordinary share ($1 par value each), and 1,000 preference shares ($1 par value each) issued. No new shares were issued in the current year. Each preference share can be converted into 1 ordinary shares at the discretion of the holders of the preference shares. Cash dividends of $10 shall be paid to each preference share every year. In the current year, cash dividends of $12,000 in total were declared and paid to the all the shareholders. Net income of $130,000 was earned in the year. Retained earnings were $500,000 at the beginning of the year. Question Which one of below is the diluted earnings per share? Select one: A. $60 O B. $43.3 O C. $59 O D. $65