The financial statements provided below relate to W Corp. Assume that W's tax rate is 40%, its WACC is 10%, and the prevailing risk-free rate is 3.0%. Based on this information, answer the questions below.

Statements of Income (in millions of dollars) For years ended 12/31 2014 2015 2016 2017 Net Sales 2,550.0 3,020.0 3,300.0 3,470.0 Expenses (Income): Operating Costs 2,242.0 2,680.0 2,920.0 3,044.0 Depreciation 118.0 96.0 90.0 90.0 Interest Income (8.0) (8.6) (9.2) (10.0) Interest Expense 53.0 56.6 60.2 67.0 Total Expenses 2,405.0 2,824.0 3,061.0 3,191.0 EBT 145.0 196.0 239.0 279.0 Taxes (40%) 58.0 78.4 95.6 111.6 Net Income 87.0 117.6 143.4 167.4Balance Sheets (in millions of dollars) As at 12/31 2014 2015 2016 2017 Cash 270.0 326.0 328.0 444.0 Accounts Receivable 300.0 330.0 348.0 363.0 Inventories 600.0 660.0 693.0 730.0 Total Current Assets 1,170.0 1,316.0 1,369.0 1,537.0 Net Plant and Equipment 677.0 717.0 747.0 777.0 Total Assets 1,847.0 2,033.0 2,116.0 2,314.0 Accounts Payable 60.0 66.0 69.0 72.0 Notes Payable 400.0 446.6 484.0 508.0 Accruals 150.0 165.0 174.0 183.0 Total Current Liabilities 610.0 677.6 727.0 763.0 Long-Term Bonds 420.0 480.0 504.0 528.0 Total Liabilities 1,030.0 1,157.6 1,231.0 1,291.0 Common Stock (10,000,000 shares) 300.0 300.0 300.0 300.0 Retained Earnings 517.0 575.4 585.0 723.0 Total Common Equity 317.0 875.4 385.0 1,023.0 Total Liabilities and Equity 1,847.0 2,033.0 2,116.0 2,314.0