Exercise 4. 25 points. Company A discloses the following information:

Return on equity = 15 percent

Net operating and investment profit after taxes (NOPAT + NIPAT) = 500,000

Business assets = Invested capital = 4,000,000

Effective interest rate after tax = 8 percent

Please calculate company A's financial leverage (debt to equity ratio).

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Exercise 5. 25 points. At the end of fiscal year 2021, company Y discloses the following information:

Net operating and investment profit after taxes (NOPAT + NIPAT) 1,100,000

Interest expense after tax (= interest paid) 500,000 Net investment in operating working capital (increase) 700,000

Net investment in non-current assets / CAPX (increase) 900,000

Non-operating losses 90,000

Depreciation and amortization expense 910,000

Increase in debt 550,000

Dividends paid 300,000

Please calculate Company Y's free cash flow available to debt and equity.