16. Suppose a firm's Total Assets Turnover ratio is 2, its Profit Margin is 12% and its liabilities finance a third of its total assets. If the firm only uses liabilities and common equity to finance its assets, compute the firm's Return on Equity (ROE).

13. A company recently reported $150,000 of sales, $80,000 of operating costs (including depreciation). The company has $20,000 of outstanding bonds that carry a 7% interest rate, and its federal-plus-state income tax rate is 25%. How much is the company's net income?

12. A company recently reported it had, in millions, $10,000 of sales, $6,000 of operating costs (including depreciation), $4,000 of outstanding bonds that carry a 5% interest rate, and a federal-plus-state income tax rate of 25%. In order to sustain its operations and thus generate future sales and cash flows, the company was required to make a $1,000 net investment in operating capital. What is the company's free cash flow (in millions)?