Q1- The 2017 statement of financial position of Rogers Tennis Shop Inc. showed long-term debt of $2.3 million, and the 2018 statement of financial position showed long-term debt of $2.55 million. The 2018 statement of comprehensive income showed an interest expense of $190,000. During 2018, Rogers Tennis Shop Inc. realized the following:

Cash flow to creditors	$	-60,000
Cash flow to shareholders	$	415,000

Suppose you also know that the firms net capital spending for 2018 was $1,300,000, and that the firm reduced its net working capital investment by $55,000.

What was the firms 2018 operating cash flow, or OCF? (Omit $ sign in your response.)

Q2- Given the following information for Lucan Pizza Co., sales = $52,000; costs = $27,300; addition to retained earnings = $5,300; dividends paid = $1,800; interest expense = $4,900; tax rate = 35%. Calculate the depreciation expense. (Do not round intermediate calculations. Round the final answer to nearest whole dollar. Omit $ sign in your response.)

Q3- Firm A and Firm B have total debt ratios of 45% and 35% and return on assets of 9% and 12%, respectively.

a. What is the return on equity for firm A and firm B? (Round the final answers to 2 decimal places.)

	Firm A	Firm B
Return on equity	%	%

Q4- Oak Bay Software has 9.2% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.8% of par.

What is the YTM? (Round the final answer to 2 decimal places.)

YTM % ?

What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Effective annual yield % ?

b. Which firm has a greater return on equty?

Q5- You have just purchased a new warehouse. To finance the purchase, youve arranged for a 30-year mortgage loan for 80% of the $3,400,000 purchase price. The monthly payment on this loan will be $17,500.

What is the monthly compounded APR on this loan? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Annual percentage rate % ?

What is the EAR on this loan? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Effective annual rate % ?