Hello, I would like to get some help with the assignment attached. Thank you!

Question 1 The following were extracted from a financial report for a 2017 fiscal year (in millions of dollars): Operating assets Operating liabilities Financial assets Financial liabilities Interest income Interest expense Comprehensive income 2017 165 78 40 60 3.6 5.8 12 The firm has a statutory tax rate of 35%. (a) What was the operating income (after-tax) for 2017? (b) What is the common shareholders' equity at the end of 2017? 1 (c) Net payout to shareholders for the year was $6 million. What was common shareholders' equity at the beginning of 2017? 2 Question 2 Some accounting numbers for a firm for fiscal year 2017 (in millions of dollars) are as follows: Beginning common equity Operating income (after-tax) Net financial expense (after-tax) Free cash flow Ending common equity Ending net operating assets 473 57 15 67 498 674 Calculate: (a) Net cash paid to common equity holders. (b) Cash paid to net debt holders. 3 (c) Net operating assets at the beginning of the year. (d) Net financial obligations (on beginning-of-year balances). 4 Question 3 The following summarizes the balance sheet and income statement for a property-casualty insurer. Amounts are in millions of dollars. The firm's income statement for 2017 reported the following numbers to which taxes have been allocated: Income on underwriting activities, after-tax Investment income and realized gains on investments, after-tax 353 891 In 2017, the expected return (after-tax) on the investment portfolio is 6%. Unrealized losses on availablefor-sale investments of $124 million were reported as part of other comprehensive income. (a) Calculate the residual income from underwriting activities for 2017. Use beginning-of-year balance sheet numbers in the calculation and a required return of 9%. 5 (b) Value the equity as of the end of fiscal 2017 under a forecast that the residual income from underwriting will grow at 2% per year in the future. 6 Question 4 A firm began its fiscal year with a book value of common equity of $823 million and net financial assets of $125 million. At the end of the year, it reported book value of common equity of $1,782 million and net financial assets of $156 million. Comprehensive income was $123.45 million for the year, with part of the income being interest from the beginning-of-year net financial assets earning at an after-tax rate of 1.2%. (a) Calculate the return on common equity (ROCE) on beginning-of-period balances. (b) What was the net payout to shareholders during the year? (c) Cash dividends of $45 million were paid out to common shareholders during the year. There were no stock repurchases. What explains the remaining net payout shareholders and in what amount? 7 Question 5 In a financial report, Delta Airlines (DAL) reported book value of common equity of $0.048 (a negative book value) and $10,457 million in net financial obligations. The annual after-tax borrowing cost is 2.1%. The 846 million outstanding common shares trade at $9.62 each. (a) Calculate the enterprise price-to-book ratio at which DAL trades. (b) Analysts are forecasting forward earnings of $2.46 per share. Calculate the (enterprise) forward P/E ratio. (c) Analysts are forecasting earnings-per-share growth over the next five years at an annual rate of 34.5%. With this forecast as a base, what is the PEG ratio? 8