Use the Following Information to Answer the Question(s)below

question 39

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental is considering a $250 million investment to launch a new rail line.The project is expected to generate a free cash flow of $32 million per year,and its unlevered cost of capital is 8%.Taggart's corporate tax rate is 21%.Taggert has 4 million shares of stock outstanding.
-Assume that to fund the investment Taggart will take on $150 million in permanent debt with the remainder of the investment funded through issuance of new equity.Assuming Taggart will incur a 2% (after-tax) underwriting fee on the new debt issue and a 5% underwriting fee on the issuance of new equity,the NPV of Taggart's new rail line is closest to:

• A)$175 million.
• B)$200 million.
• C)$235 million.
• D)$240 million.

Recognize different prospecting methods and their effectiveness in generating leads.

Understand the use and impact of e-mail marketing in the sales process.

Comprehend the law of averages as it applies to sales prospecting and its practical outcomes.

Identify prospecting methods and differentiate between various types.

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Definitions:

Expense Accounts

Categories within financial accounting where expenses are recorded and tracked.

Outstanding Check

A check that has been written and recorded in the issuer's accounting records but has not yet been cashed or cleared by the bank.

Bank Reconciliation

Bank reconciliation is the process of matching and comparing the account records held by a company with the bank statements to ensure accuracy and consistency in financial records.

Petty Cash Fund

A small amount of cash kept on hand in a business for minor expenses.