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.

Required:

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.