1. Straw Corp has an operating profit of $120 million produced from $980 million in sales. If Straw has no interest expense and currently pays 35% of its operating profits in taxes. Strav has no preferred stocks. then what is Straw’s net profit margin?

2. What are the major transactions and other financial activities that impact the amount of paid-in capital of a corporation? Identify for each major type of transaction or activity whether it increases or decreases the amount of paid-in-capital.