What is the expected free cash flow for the best case scenario?
Destroya Extermination Services projects next year's sales of its new X-Ray termite inspection service at 5,000 inspections priced at $175 each. The variable costs per inspection are expected to be $87.50 Fixed cash costs are expected to be $90,000 and depreciation $110,000. The company's marginal tax rate is 34%. Destroya believes that any of its forecasts including fixed costs, but not depreciation or the tax rate which are known for certain, could be high or low by as much as 10%.
A) $414,400
B) $330,000
C) $394,500
D) $383,240
Answer: D
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Which of the following is a characteristic of the Public Company Accounting Oversight Board?
A) It regulates all firms providing financial services. B) It is a six-member board with legislative and disciplinary power. C) A majority of the board is dependent on publicly held accounting companies. D) The board is funded by publicly held companies overseen by the Securities and Exchange Commission.
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