Pendent Publishing recently reported $10,500 of sales, $5,050 of operating costs (other than depreciation) and $1,050 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. During the year, the firm had expenditures on fixed assets totaling $1,025 while net operating working capital remained constant. What was Pendent's EBIT? What was Pendent's free cash flow? Round your answers to the nearest dollar amount. EBIT = $4,400, FCF = $3,325 O EBIT = $4,400, FCF = $3.300 EBIT = $3,300, FCF = $3,300 O EBIT = $4,181, FCF = $3,161 Dovola Inc. is trying to choose between three alternative investments. Dovola is choosing between J. Peterman Inc. preferred stock with a return of 7%. J. Peterman corporate bonds with a return of 7.25% and New York State Municipal bonds with a return of 6.25%. The three securities that the company is considering are as follows: The company's tax rate is 25%. What is the best investment choice and what is the after-tax return on that investment? O Muni, 6.25% Preferred stock, 6.78% None of these choices O Corporate bond, 5.44% O Muni, 5.44%