Question: need solution will rate 1. Simpson corporation is planning an equity issue to finance a new project. Simpson lands to issue 100,000 shares of stock.

need solution will rate

1. Simpson corporation is planning an equity issue to finance a new project. Simpson lands to issue 100,000 shares of stock. Projected EPS after completion of the project is $13 and the total shares outstanding will be 200,000. what are the project after-tax earnings after completion of the project

A. 2.4 million

B. 2.6 million

C. 2.8 million

D. Non of the above

2.

The post merger P/E for smith corporation is predicted to be 12. The EPS for the previous 4 quarters total $2.5 for smith. The number of shares outstanding is 100,000. the earning valuation of smith is

A. 1 million

B. 3 million

C. 5 million

D. None of the above

3.

28.Which of the following ratios is not a liquidity ratio?

a.ROE

b.Current

c.Quick

d.Receivable turnover

e.None of the above

4.

Assets are 500 and expected to grow by 14%. Liabilities and owners equity are 500 and expected grow by 11%. the plug for the first pro

Liability plug

Cash plug

Neither A nor B

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