Use the Information Below to Answer the Following Questions:
a

question 31

Multiple Choice

Use the information below to answer the following questions:
A summary of the entries in the Cash ledger account of Staple Ltd for the month of January was as follows:
$\begin{array}{lr} & \$ \\ \text { Opening balance } & 50,000 \\ \text { Cash from accounts receivable } & 40,000 \\ \text { Cash sales } & 25,000 \\ \text { Dividends received } & 10,000 \\ \text { Cash from issue of shares } & 60,000 \\ \text { Payments to accounts payable } & 30,000 \\ \text { Payments for wages } & 15,000 \\ \text { Purchase of land } & 20,000 \\ \text { Payment of dividends } & 20,000 \\ \text { Purchase of plant } & 45,000 \\ \text { Payment of taxes } & 25,000 \\ \text { Payment of interest } & 10,000 \\ \text { Closing balance } & 20,000\end{array}$
-What was the cash flow from investing activities of Staple Ltd?

• A) ($5000)
• B) ($45 000)
• C) ($65 000)
• D) ($55 000).

---

Definitions:

WACC

A calculation known as the Weighted Average Cost of Capital determines a corporation's capital costs by proportionally weighting different categories of capital.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are applied to a person or company's income.

WACC

The Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.