A Company Needs an Increase in Working Capital of $20,000

question 41

Multiple Choice

A company needs an increase in working capital of $20,000 in a project that will last four years.The company's tax rate is 30%,and its discount rate is 10%.What is the approximate present value of the working capital to be released at the end of the project? (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $6,000.
• B) $9,562.
• C) $13,660.
• D) $14,000.

Distinguish between dividend yield and dividend payout ratio.

Understand the accounting for share transactions including issuance and share dividends.

Understand the different types of shares and their characteristics.

Comprehend the effects of share dividends and bonus issues on equity.

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Definitions:

Lumbar Plexus

A network of nerve fibers in the lumbar region of the body, providing sensation and movement.

Cervical Plexus

A network of nerves in the neck that supplies movement and sensation to the neck, upper shoulders, and part of the arms.

Patellar Reflex

A reflex action in which the patellar tendon is tapped, causing the quadriceps muscle to contract and kick the lower leg forward.

Rectus Femoris Muscle

A muscle of the anterior thigh that is part of the quadriceps group, involved in knee extension and hip flexion.