Ryngnert & Sons, Inc. has operating income (EBIT) of $2,250,000. The company's de preciation expense is S450,000, its interest expense is $120,000, and it faces a 40 percent tax rate. 1. What is the company's net income? $1,008,000 b. $1,278,000 c. $1,475,000 d. $1,728,000 e. $1,800,000 2. What is its net cash flow? a. $1,008,000 b. $1,278,000 c. $1,475,000 d. $1,728,000 e. $1,800,000 Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid interest of $20,000, it received dividends from another cor- poration of $10,000, and it paid $40,000 in dividends to its common stockholders. What is Wayne's federal income tax? a. $122,760 b. $130,220 c. $141,700 d. 155,200 e. $163,500 4. A firm purchases $10 million of corporate bonds that paid a 16 percent interest rate, or $1.6 million in interest. If the firm's marginal tax rate is 35 percent, what is the after-tax interest yield? 3. a. 7.36% b. 8.64% c. 10.40% d. 13.89% e. 14.32% 5. Refer to Self-Test Problem 4. The firm also invests in the common stock of another company having a 16 percent before-tax dividend yield. What is the after-tax dividend yield? a. 7.36% b. 8.64% c. 10.40% d. 13.89% e 14.32%