1) In the year, Belyk Paving Co. had sales of= $2,400,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were: $1,425,000, $435,000, and $490,000, respectively. Additionally, company had the interest expense of=$215,000 and tax rate of 35%(ignore any tax loss carryback or carryforward provisions.). Belyk Paving Co. paid out= $400,000 in cash dividends. Suppose that no new investments were made in net fixed assets or net working capital, and no new stock was issued during the year.
i) Compute firm's new long-term debt added in the year.
ii) Equally weighted portfolio consists of 70 assets which all have standard deviation of 0.138. Average covariance between assets is= 0.034. find out standard deviation of this portfolio.