a) Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an investment in net working capital of $10,000 at the time of installation, recoverable when the machine is terminated. Your firm is selling the asset for $180,000. Your firm's marginal tax rate is 34%. What is the cash flow effect from selling this machine?
b) Albany Motors recently completed a 3-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market value of the company's stock equaled $1.5 billion. What was the price of the company's stock following the stock split?