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Consider the following simplified financial statements for the Maverick Corporation (assuming no income taxes): Income Statement - Sales: $85,000; Costs: $64,150; Net Income: $20,850. Balance

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Consider the following simplified financial statements for the Maverick Corporation (assuming no income taxes): Income Statement - Sales: \$85,000; Costs: \$64,150; Net Income: \$20,850. Balance Sheet - Assets: \$437,000; Debt: \$109,250; Equity: \$327,750. The company has predicted a sales increase of 10 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. What are the net income and total assets in the pro forma statements next year? NI: $22,935 : TA: $437.000 NI: $21,893 : TA: $480.700 NI: $22,935 : TA: $480.700 NI: $25.020: TA: $480.700 A taxable bond has a coupon rate of 7.5 percent and a YTM of 8.5 percent. If an investor has a marginal tax rate of 25 percent, what is the equivalent after-tax yield? 6.4% 2.1% 6.0% 5.6% You purchase a bond with a coupon rate of 6 percent and a clean price of $1,050. If the next semiannual coupon payment is due in three months, what is the invoice (dirty) price? Assume a par value of $1,000. $1.090$1,080$1.050$1,060 ABC Corp. just issued 15 -year bonds at a coupon rate of 7.5 percent. The bonds make annual payments. The par value is $1.000. If these bonds currently sell for 97 percent of par value, what is the Yield To Maturity? 6.55%9.05%7.85%8.75% ABCC0. issued 20 -year bonds a year ago at a coupon rate of 8 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price? $929.31$1,012.56$831.32$999.99

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