1. At the beginning of the year, a firm had current assets of $1,050,000 and current liabilities of $950,000. At the end of the year, the current assets are $1,420,000 and the current liabilities are $1,210,000. What is the change in net working capital?

2. Gartner Systems has no debt and an equity cost of capital of 10.3%. Gartner's current market capitalization is $100 million, and its free cash flows are expected to grow at 3.2% per year. Gartner's corporate tax rate is 35%. Investors pay tax rates of 35% on interest income and 21% on equity income. a. Suppose Gartner adds $53 million in permanent debt and uses the proceeds to repurchase shares. What will Gartner's levered value be in this case? b. Suppose instead Gartner decides to maintain a 50% debt-to-value ratio going forward. If Gartner's debt cost of capital is 7.72%, what will Gartner's levered value be in this case? Hint:Make sure to round all intermediate calculations to at least four decimal places.