Use the Information for the Question(s)below

question 56

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities.Management has projected the project will produce the following cash flows for the first two years (in millions) .
-The incremental EBIT for the Shepard Industries project in year two is closest to:

• A)$415
• B)$875
• C)$595
• D)$510

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Definitions:

Registration Statement

A set of documents, including financial statements and a prospectus, filed with a securities regulatory body to register new securities for public sale.

CFO

Chief Financial Officer, an executive responsible for managing the financial actions of a company.

Regulation A

An exemption under the Securities Act allowing smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to less stringent reporting requirements.

Resold

Refers to the action of selling something that has already been bought; involves the subsequent or secondhand sale of an item or property.