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coupon rate

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Question

General Matter’s outstanding bond issue has a coupon rate of 8.0%, and it sells

at a yield to maturity of 7.00%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? (Enter your answer as a percent rounded to 2 decimal places.)

 
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profit margin

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Question

Torrid Romance Publishers has total receivables of $2,800, which represents 20 days’ sales. Total assets are

$73,000. The firm’s operating profit margin is 5.9%. Find the firm’s ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Asset turnover ratio?

ROA?

 
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rate of interest

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Question

Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The

firm’s EBIT was $2.9 million.

a. What is its times interest earned? (Round your answer to 2 decimal places.)

  Times Interest earned?

b. If depreciation is $110,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)

Cash coverage ratio?

 
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economic value

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Question

Home Depot entered fiscal 2016 with a total capitalization of $27,258 million. In 2016, debt investors received

interest income of $845 million. Net income to shareholders was $6,390 million. (Assume a tax rate of 35%.)

Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Economic value added

 
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