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problem1: Companies create income from their "regular" operations & from things like interest on securities they hold, which is called non-operating income. Selfi Metals recently reported $9,000 of sales, 6,000 dollars of operating costs other than depreciation, & $1,500 of depreciation. The company had no amortization charges and no non operating income. It had issued 4,000 dollars of bonds that carry a 7 percent interest rate, & its federal-plus-state income tax rate was 40%. find out the firm’s operating income, or EBIT?

[A] $1,300

[B] $1,400

[C] $1,500

[D] $1,100

[E] $1,200

problem2: Collins Inc’s latest net income was $1 million, & it had 200,000 shares outstanding. The company wants to pay out 40 percent of its income. find out the dividend per share.

[A] $1.80

[B] $1.90

[C] $2.00

[D] $1.60

[E] $1.70

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920128

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