1. What are the consequences of the payment of a share dividend on the share price?

2. Sky, Inc. has just purchased a $600,000 machine to produce calculators. The machine will be depreciated by the straight line method over its economic life of five years and will produce 20,000 calculators each year. There will be no inventory at the end of each year. The variable production cost per calculator is $15 and total fixed costs including depreciation costs are $1,100,000 per year. The corporate tax rate for the company is 40 percent. According to the survival break even analysis, what is the minimum selling price the firm should charge per calculator? (a) $64 (b) $55 (c) $60 (d) $70 (e) None of the above

3. If venture investors invest $1,000,000 now, will receive 25% of the exit value of $9,950,000 at the end of five years, what is the expected compounded rate of return on their investment? (a) 16% (b) 18% (c) 20% (d) 22% (e) 25% the answer is 20% could u please show working.