1. Kendall Corners Inc. recently reported net income of $3.9 million and depreciation of $585,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

2. In its most recent financial statements, Del-Castillo Inc. reported $30 million of net income and $910 million of retained earnings. The previous retained earnings were $904 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

3.

The Shrieves Corporation has $15,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 8.5%, state of Florida muni bonds, which yield 4% (but are not taxable), and AT&T preferred stock, with a dividend yield of 7%. Shrieves' corporate tax rate is 35%, and 70% of the dividends received are tax exempt. Find the after-tax rates of return on all three securities. Round your answers to two decimal places.

After-tax rate of return on AT&T bond	%
After-tax rate of return on Florida muni bonds	%
After-tax rate of return on AT&T preferred stock	%

4.

The Moore Corporation had operating income (EBIT) of $700,000. The company's depreciation expense is $140,000. Moore is 100% equity financed, and it faces a 40% tax rate.

What is the company's net income? Assuming no changes to any of the Balance Sheet accounts, what is its net cash flow?