1) ABC Corporation has announced that its net income for year ended July 30, 2009, is $1,824,214. Company had the EBITDA of $ 5,174,366, and its depreciation and amortization expense was equal to $1,241,790. Company’s tax rate is 34 percent. Determine the amount of interest expense for the firm?
a. $2,763,961
b. $939,747
c. $1,187,720
d. $1,168,615
2) Return distribution for an asset is as shown in table given below. What are the missing values if expected return is 10 percent?
Return Probability
0.1 0.25
X 0.5
X 0.25
a. 0.20
b. 0.15
c. 0.10
d. None of the above