Given the following financial statements for ARGON Corporation, ...

[tingc95]

Given the following financial statements for ARGON Corporation, what is the company's after-tax
  cash flow from operations?
 
  Income Statement Balance Sheet
  Year Ended 12/31/10 12/31/2010 12/31/2009
  Sales 1,300,000 Current Assets 50,000 45,000
  Cost of Goods Sold 750,000 Fixed Assets 430,000 350,000
  Operating Expenses 200,000 Total Assets 480,000 395,000
  Depreciation 100,000
  EBIT 250,000 Current Liabilities 35,000 50,000
  Interest Expense 50,000 Long-term Debt 330,000 270,000
  EBT 200,000 Common Stock 5,000 5,000
  Taxes 80,000 Retained Earnings 110,000 70,000
  Net Income 120,000 Total Liabilities & Equity 480,000 395,000
  A) 270,000 B) 120,000 C) 295,000 D) 10,000

Question 2

Optimal Capital Structure MAXIMIZES the firm's overall cost of capital.
 
  Indicate whether the statement is true or false

[nyrave]

Answer to Question 1

A

Answer to Question 2

FALSE