1.

You gather the following information from an annual report (A quick check reveals that the firm has terrible accountants, but you've been instructed to use the numbers as given):

Sales = 38,870

COGS = 16,448

EBIT = 22,519

Interest = 3,229

Net Income = 9,316

Current Assets = 22,941

Inventory = 13,848

Accounts Receivables = 9,566

Total Assets = 52,982

Current Liabilities = 9,726

Total liabilities = 25,712

Total equity = 34,908

What is the firm's Net Profit Margin?

2. What is the yield to maturity for a bond with 24 years to maturity, a coupon rate of 6.9% making payments semi-annually, a face value of $1000 if it currently sells for $1007.90?

3. Sargento Cheese has a bond with the following characteristics; a coupon rate of 9.3%, a par value of $1000, 16 years to maturity, and a Yield to Maturity of 8%?

What price should you expect to pay for this bond?