1. What would be the average tax rate a firm pays if it has $105,000 of taxable income?
a. 27.8%
b. 36.5%
c. 23%
d. 39%
2. Cash flow from assets = cash flow to stockholders + cash flow to creditors
a. True
b. False
3. In the calculation of operating cash flow, depreciation expense and income tax expense are subtracted from EBIT.
a. true
b. false
4. An increase in NWC will decrease cash flow from assets.
a. true
b. false