A).A company borrows $500 million from a bank to finance the construction of its headquarters building. The terms of the loan are as follows: term of the loan is three years; annual interest is 14%; annual payment of simple interest only, and principal payable at the end of the term. It takes two years to build the building, during which time the company earns $10 million on the unspent loan proceeds. How much of the interest can be capitalized? $ __________________.

B).Cavalier Copper shows on its most recent balance sheet $840 million in long term loans, $320 million in shareholders equity, $100 million in net profit on its income statement and $100 million in dividends payable to stockholders. It has 1,000,000 shares outstanding with a current market value of $12.50/share. Assuming no other information is available or relevant, the companys total assets are $____________ and its EPS is ______________.

Using the same information as in question B) and assuming the company discloses an additional $100 million in operating lease commitments with a net present value of $100 million, which it treats as debt, the companys total debt to total capital ratio should be _______