What will be the operating cash flow if sales are increased

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Reference no: EM131603781

1. At a sales level of $40,000, the operating cash flow is $8,500 and the fixed operating costs are $12,000. What will be the operating cash flow if sales are increased to $48,000?

a. $12,600

b. $16,500

c. $10,200

d. $18,200

e. $11,100

2. A company currently expects free cash flow in the upcoming year of $25,000. Each year after that, the free cash flow is expected to grow by 3%. The relevant discount rate for the company’s cash flows is 9% per year. From a discounted cash flow method, what is the value of the company?

a. $417,000

b. $833,000

c. $23,000

d. $278,000

e. $25,000

3. A company currently has no debt, and equity of $3M, and an equity beta of 0.78. If the company changes its capital structure such that it now has $1.5M of debt, then what will the equity beta be if the tax rate is 30%?

a. 1.01

b. 1.17

c. 0.89

d. 1.33

e. 0.78

4. What is the accounting breakeven of the following project: Unit price $20. Variable costs $12. Fixed costs $328. Depreciation $128.

a. 328 units

b. 820 units

c. 27.3 units

d. 41 units

e. 57 units

Reference no: EM131603781

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