The answer choose is not necessarily correct.

QUESTION 1 Which of the following is NOT one of the four steps necessary for allocating reported tax expense to the operating income components in the reformulated Income Statement? 1. Calculate the tax expense or deduction associated with Unusual Operating Income 2. Calculate the tax expense associated with Core Operating Income from Sales 3. Calculate the tax expense associated with Operating Other Comprehensive Income 4.Calculate the debt tax shield associated with Net Financial Expenses (NFE) QUESTION 2 Having made its required interest payments, which of the following is NOT an alternative the firm has for using its remaining free cash flow (FCF) determined in the reformulated Statement of Cash Flows? 1. Payment of dividends 2. Purchase of a subsidiary 3. Repurchase of common shares 4. Purchase of short-term investments QUESTION 3 The reformulated Income Statement for a company with a 30% tax rate is presented below. Core Operating Income from Sales (before tax) 1,000 Core Other Operating Income (before tax) 400 Unusual Operating Income (before tax) 200 Interest Income before tax) 250 Interest Expense (before tax) 110 Profit Before Tax 1,740 Income tax expense 550 Based on this information, what is the tax allocation to Core Operating Income from Sales? 1.412 2.328 3.550 4.522