The following information is from reformulated financial statements (in millions of dollars):

a. (1) Calculate the dividends, net of capital contributions, for 2008.
(2) Calculate ROCE for 2008; use average book value in the denominator.
(3) Calculate RNOA for 2008; use the average net operating assets in the denominator.
(4) Supply the numbers for the formula
ROCE = PM × ATO + [Financial leverage × (RNOA – Borrowing cost)]

b. The firm's short-term borrowing rate is 4.5 percent after tax. Supply the numbers for the formula
RNOA = ROOA + (OLLEV × OLLEV × OLSPREAD)

c. Repeat the exercise in part (a) using the followinginformation:

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2008 2007 Operating assets Short-term debt securities Operatig liabilities Book value Sales Operating expenses Interest revenue Tax expense (tax rate-34%) Earnings $2,000 800 (100) $2,700 $2,700 1,000 (300) 3,400 2,100 [1,677) 90 (174) 339