following information applies to problems 22, 23, and 24: Last year, Sharpe Radios had net operating profit after-taxes (NOPAT) of $7.8 million. Its EBITDA was $15.5 million and net income was $3.8 million. During the year, Sharpe Radios made $5.5 million in net investment in operating capital, and its tax rate was 40% What is Sharpe Radios' depreciation and amortization expense? (Hint: compute EBIT using the NOPAT equation) 22 a $2.5 million b. $2.2 million c. $2.1 million d. $1.1 million 23. What is Sharpe Radios' interest expense? (Hint: work the income statement from the bottom up) a. $ 6.33 million b. $9.17 million c. $8.33 million d. $6.67 million What is Sharpe Radios' free cash flow? a. $4.8 million b. $2.3 million c. $4.3 million d. $1.9 million 25. Which of the following financial ratios will answer the question: will the firm be able to satisfy its short term debt obligations as they fall due? a. Price earnings ratio b. Inventory turnover ratio c. Quick ratio d. Both 'a' and 'b' 26. If a firm is 100% equity financed, which of the following must be true? a. The return on equity equals the return on assets b. Total assets equals total equity c. Both 'a' and 'b' d. None of the above. 27. All of the following are limitations of financial ratios except a. The Du Pont analysis b. Comparison with industry averages is difficult for a conglomerate firm that operates different divisions in different industries c. Sometimes it is hard to tell whether a ratio is good or bad d. Seasonal factors can distort ratios