6. (continued,from 4) In the event of default, the recovery rate is 50%. If investors are risk-neutral, what is the probability of default per year implied by the spread? a. 1% b. 890 c. 4% d. 7% 7. A firm has sales of $46,700 and inventory of $5,600. Cost of goods sold is 62 percent of sales and depreciation is 8 percent of sales. What is this firm's inventory turnover ratio? (Inventory turnover-Cost of Goods Sold/Inventory) d.-4 8. You currently have $7,200 in your investment account. You can carn an average rate of return of 11.7 percent per year. How long will you have to wait until your account is worth S50,000? a. 9.47 ycars b. 11.28 years c. 14.67 years d. 17.51 years