1. Firm B has an EBIT of $2.4 million. Total capital is $50 million and the capital structure is composed of 40% debt and 60% equity. If the firms tax rate is 30%, and the cost of the firms debt is 4.5%, what is the Net Income of Firm B?
   • $1050

• • $105

• • $735

• • $780

2. Firm C has an EBIT of $4.8 million, a cost of debt of 3.5% on $40 million in debt and a tax rate of 21%. If the Deprecation is $600,000, the Cost of Goods Sold is $3.1 million, Capital Expenditures are $1.1 million, and the change in NWC is $0, what is the Free Cash Flow of Firm C?

• • $0.192 million

• • $5.308 million

• • $3.292 million

• • $5.492 million

3. At 4.2% annual return, $4000 invested today will be worth which amount in 6 years?

$5120

$5142

$5150

$3125