XYZ Has Excess Cash of $400,000 and Earns 2

question 94

Multiple Choice

XYZ has excess cash of $400,000 and earns 2.5% on excess cash.If XYZ has a corporate tax rate of 30%,what is the free cash flow to the firm?

• A)$1.09 million
• B)$1.08 million
• C)$1.073 million
• D)$1.069 million
• E)$1.21 million

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Definitions:

Population Standard Error

An indicator of the variability or distribution of average values from a sample in relation to the overall population mean.

Confidence Interval

A range of values derived from sample statistics that likely covers the true population parameter with a specified probability.

Population Standard Deviation

A measure of the dispersion of a population's values from the mean, representing how spread out the population data are.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.