* Question 1
0 out of 10 points | | | Below is an excerpt from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of software Tax benefits of employee stock plans Special charges (Gains)/losses on investments Change in operating assets and liabilities: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities Net cash provided by operating activities Cash flows from investing activities: Payments for plant and other property Proceeds from disposition of plant and other property Investment in software Purchases of marketable securities and other investments Proceeds from disposition of marketable securities and other investments Net cash used in investing activities | Fiscal Year Ended December 31, 2003 $1,500 250 400 450 200 20 600 250 (475) 70 (50) 85 __200 _3,500 (2,000) 800 (500) (1,500) 1,200 _____ (2,000) __ | Additional information: Cash interest receipts Cash interest payments From the equity statement:Shareholders’ equity December 31, 2002 Shareholders’ equity December 31, 2003 Net payout to shareholders The firm’s tax rate is 35%. | 110 (200) 5,500 4,760 2,500 |
What is the net interest payments after taxes?Answer | | | | | Selected Answer: | 4. 200 | | | | | * Question 2
0 out of 10 points | | | Selected data from Intel’s financials are as below:Year 2000 2001 2002 Net cash flow from operations 12,827 8,789 9,129 Net investments in capital expenditures 1,044 (7,862) 1,005 Net Interest Expense 987 393 194 Net Income 10,535 1,291 3,117 Assume a 35% tax rate and cost of capital to be 10%.Compared to the prior year, Intel's net income dropped drastically in 2001 and then recovered slightly in