Question 3 (10 points)

Uniontown Books began operating in 2011. The company lost money its first three years of operations, but has had an operating profit during the past two years. The companys operating income (EBIT) for its first five years was as follows:

Year	EBIT
2011	-$1,600,000
2012	-$2,000,000
2013	-$1,000,000
2014	$1,200,000
2015	$7,000,000

The company has no debt, and therefore, pays no interest expense. Its corporate tax rate has remained at 34% during this 5-year period. What was Uniontowns tax liability for 2015? (Assume that the company has taken full advantage of the carry-back and carry-forward provisions, and assume that the current provisions were applicable in 2011.)

Question 3 options:

	$1,175,040
	$1,040,400
	$1,468,800
	$1,224,000
	$1,150,560

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Question 4 (10 points)

Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes Market Value Added (MVA) is $198 million, what is the companys stock price? (Round your final answer to two decimal places.)

Question 4 options:

	$94.62
	$68.06
	$75.53
	$83.00
	$92.13