1. Russell Securities has $239 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power (BEP) ratio was 40% and its return on assets (ROA) was 14%. What was the company's interest expense? (Answers are in millions.)
$22.31
$62.14
$95.60
$143.40
$39.83
2. The term "permanent currents assets" refers to:
A. Fixed Assets B. Non-marketable assets C. All in store inventory D. none of the above
3. CCC currently has sales of $28,000,000 and projects sales of $39,200,000 for next year. The firm's current assets equal $9,000,000 while its fixed assets are $8,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $500,000. The firm presently has $3,600,000 in accounts payable, $1,800,000 in long-term debt, and $11,600,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $1,000,000 in dividends next year and has a 5.0% net profit margin. What are the company's additional funds needed for the next year? (Round your answer to the nearest dollar.)
$4,100,000
$3,140,000
$2,660,000
$700,000
$1,700,000