Charleston Manufacturing Inc. has a 40% tax rate. In 2021, sales increased by 12%, while Cost of Goods sold and interest expense remained the same.

INCOME STATEMENT	2020
Net Sales	$80,000
Cost of Goods Sold	$65,000
EBIT	?
Interest Expense	$15,000
EBT	$130,000
Taxes	?
Net Income	$182,000
Dividends	$27,000
Additions to Retained Earnings	$155,000
BALANCE SHEET ASSETS
Cash	$50,000
Accounts Receivable	$80,000
Inventories	?
Total Current Assets	$230,000
Net Fixed Assets	$37,000
Total Assets	?
LIABILITIES AND EQUITY
Accounts Payable	$60,000
Notes Payable	$20,000
Accruals	$20,000
Total Current Liabilities	$100,000
Long-term Debt	$25,000
Common Stock	$19,000
Retained Earnings	$21,000
Total Liabilities and Equities	?

7. Charleston Electric just issued ten-year bonds that make annual coupon payments of $25. Suppose you purchased one of these bonds at par value ($1,000) when it was issued. Right after your purchase, market interest rates jumped, and the YTM (interest rate) on your bond rose to eight percent. What is the new price of you bond?

1. $1000.00
2. $2521.09
3. $926.40
4. $630.95