Question

QUESTION 17 1 points Save Answer Assume the following for your corporation: sales (aka revenue)- $250 Cost of goods sold 160 depreciation 35 Interest Expense 20 tax rate-34% What is the corporation's total after tax net income? ? 23.10 O 11.90 O 35.00 O 46.20 O 36.30 QUESTION 18 1 pointsSave Answer In a reasonably efficient market, at the time of an announcement, market prices react to O The announcement of new information that was unanticipated O The announcement of new information that was previously fully anticipated O Both, . e., both the announcement of new previously fully anticipated, as information that was well as information that was unanticipated O neither, because market price movements are random

Answer 1

Revenue	250
COGS (-)	160
Gross Income	90
Depriciation(-)	35
Interest Expense (-)	20
EBT	35
Tax (34%) (-)	11.9
Net Income	23.1

18a) The announcement of new information that was unanticipated.

19) Not clearly visible and has exam written

20e) (D(1+g)/r-g) /(1+r)

         =(2*1.065/(0.086-0.065))/1.086

         =93.39647