1. What is the change in cash balance for a firm with the following: $10,000 cash flow from operations, $1,600 cash used for a new investment, a reduction in the level of debt of $2,000, $1,000 in cash dividends, and $200 in depreciation expense?
2. The World Income Appreciation Fund has current assets with a market value of $6.6 billion and has 155 million shares outstanding. What is the net asset value (NAV) for this mutual fund? (Round your answer to 2 decimal places.)
3. Indicate which bond in the following pairs of bonds is likely to bear the higher interest rate (yield) and state why. If there is no general reason for a difference indicate that they would be the same.
4. A firm has a $10 million bond outstanding with a coupon rate of 6%. The tax rate is 35%. What is the present value of the tax shield?______ $3.5 million 0.18 million $10 million $13.5 million.