1.) Tater and Pepper Corp. reported free cash flows for 2015 of $50.1 million and investment in operating capital of $33.1 million. Tater and Pepper incurred $14.7 million in depreciation expense and paid $31.1 million in taxes on EBIT in 2015.

Calculate Tater and Peppers 2015 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.)

2.) Compounding with Different Interest Rates A deposit of $780 earns interest rates of 10.8 percent in the first year and 7.8 percent in the second year. What would be the second year future value?

3.) Determinants of Interest Rate for Individual Securities You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 3.80 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate = 2.90% Default risk premium = 2.55% Liquidity risk premium = 1.10% Maturity risk premium = 2.30% What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds?