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
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
Problem 1PS
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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
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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