3. The following information is from reformulated financial statements (in millions) $2,700 $2,000 Operating assets Short-term debt secuties (100 Bonds payable Book value 2,100 1,677 27 137) 106 Interest expense Tax expense eux rate Earnings (net 34%) uestion 1 a. Calculate the dividends, net of capital contributions, for 2012 b. Calculate ROCE for 2012; use average book value in the denominator c. Calculate RNOA for 2012; use the average net operating assets in the denominator. d. Supply the numbers for the formula ROCE = PM x ATO + Financial leverage x (RNOA Borrowing cost)] uestion The firm's short-term borrowing rate is 4.5 percent after tax. Supply the numbers for the formula RNOA = ROOA + (OLLEV xSPREAD) Question 3 Repeat the exercise in part (a) using the following information (in millions) 2012 2011 Operating assets Short-termm debt securities Operating liablities Book value 52,700 1,000 $2,000 800 Operating expenses Interest revenue tx expense (tax rate 2,100 (1,677) 90 174) 34%)