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7. LSP Corporation has forecasted sales of $100,000, operating expenses excluding depreciation and amortization 40,000, depreciation and amortization 20,000, and net income 18,00O. The company falls in the 4C percent tax bracket. The amount of interest expense for LSP Corporation is: * O $5,000 O $10,000 O $25,000 O $40,000 O None of the above

7. LSP Corporation has forecasted sales of $100,000, operating expenses excluding depreciation and amortization 40,000, depreciation and amortization 20,000, and net income 18,00O. The company falls in the 4C percent tax bracket. The amount of interest expense for LSP Corporation is: * O $5,000 O $10,000 O $25,000 O $40,000 O None of the above

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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03QONZTErqE4rKhjNWe 7. LSP Corporation has forecasted sales of $100,000, operating expenses excluding depreciation and amortization 40,000, depreciation and amortization 20,000, and net income 18,000. The company falls in the 40 percent tax bracket. The amount of interest expense for LSP Corporation is: $5,000 $10,000 $25,000 $40,000 None of the above 8. The December 31, 2019 income statement for App Inc. reported $2.5 million of net income, and its year-end balance sheet reported $15 million of retained earnings. The Dec. 31, 2018 balance sheet showed $14 million of retained earnings. The total amount dividends (in millions of dollars) paid to shareholders for the year 2019 is: * $1.5 million $2.5 million $3.5 million $4.5 million None of the above
Transcribed Image Text:03QONZTErqE4rKhjNWe 7. LSP Corporation has forecasted sales of $100,000, operating expenses excluding depreciation and amortization 40,000, depreciation and amortization 20,000, and net income 18,000. The company falls in the 40 percent tax bracket. The amount of interest expense for LSP Corporation is: $5,000 $10,000 $25,000 $40,000 None of the above 8. The December 31, 2019 income statement for App Inc. reported $2.5 million of net income, and its year-end balance sheet reported $15 million of retained earnings. The Dec. 31, 2018 balance sheet showed $14 million of retained earnings. The total amount dividends (in millions of dollars) paid to shareholders for the year 2019 is: * $1.5 million $2.5 million $3.5 million $4.5 million None of the above
9. TSE company reported a Net income of $91 million for N. Depreciation expense was $141 million. Net interest expense was $60 million. Tax rate is 30%. The Earnings before interest, taxes and year depreciation (EBITDA) for this company is: $41 million $292 million O $331 million $190 million None of the above me during 2018 of $165m, and after paying uring in the
Transcribed Image Text:9. TSE company reported a Net income of $91 million for N. Depreciation expense was $141 million. Net interest expense was $60 million. Tax rate is 30%. The Earnings before interest, taxes and year depreciation (EBITDA) for this company is: $41 million $292 million O $331 million $190 million None of the above me during 2018 of $165m, and after paying uring in the
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