Question no. 23

B) duts occur in both primary and capital markets at the same time. Ford Motor Company sells a new issue of common stock to raise funds through a public offering. C) D) The US. Government sells 3-month Treasury bills. common stock owned by an individual investor is sold to another investor irm has total assets of $20,000,000 and has raised money from both debt and equity. Assume that the firm's cost of capital is 12%. Assume that the firm earn 17% operating return on itsassets (ORO ) and its operating profitrmargin (OPM) is 20%. at is the amount of Economic Value Added for this firm? A $1,000,000 -B. S1.600,000 C. $600,000 20,000,000 y lay, 3,400,000 D. $2,000,000 o,ooo,O00 x 18a, 400,oo0 O00 O 23) The December 31, 2009 balance sheet shows net fixed assets of $175,000 and the December 31, 2010 balance sheet shows net fixed assets of $255,000. The depreciation expense for 2009 is $45,000 and the depreciation expense for 2010 is $55,000. Based on this information, the net capital spending during 2010 is A) $115,000. B) $135,000. 255,000-5,000+4000 Fired 24) For the treasury securities below, which orne has the maturityof 30 years? A) Treasury Note B) Treasury Bill D) $155,000. STreasury Bond