1. What is the total cash flow for Firm A: $75,000 sales, $2,000 cash dividends, $50,000 COGS, $4,000 administrative expenses, $3,000 depreciation expense, $5,500 interest expense, no changes in working capital, and a tax rate of 35%?
$9,125
$10,520
$8,125
$11,125
2. What is the plowback ratio in the previous question?
75.4%
24.6%
17.9%
78.1%