1 Vasudevan Inc. recently reported operating income of $2.75 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $0.6 million. How much was its free cash flow, in millions?

	a.	$2.25
	b.	$2.03
	c.	$1.93
	d.	$2.14
	e.	$2.36

2.

AT&T would like to improve their ROE to 15%. They think they can maintain profit margin of 11% while maintaining their total asset turnover at 0.45. What total debt to total asset ratio would be needed to achieve AT&Ts ROE goal? Assume total assets = total invested capital.

	a.	60%
	b.	58%
	c.	67%
	d.	40%
	e.	33%