1. Describe 2 similarities and 2 differences between a financial asset and a tangible asset?
2. Payback period Project K costs $70,000, its expected cash inflows are $8,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
3. A company has total assets of $2.5 million, total liabilities of $1.0 million, and $225,000 worth of 8% preferred stock outstanding.
What is the firm's total book value? Enter your answer in dollars and not in millions of dollars. $
4. Factors destroying firm value following a merger or acquisition could include all but which of the following:
1. Poor product quality
2. Excessive wage and benefit levels
3. Low labor productivity
4. High employee turnover
5. Incremental revenue due to product cross-selling