Precision Tools Inc. Financial Statements Income Statement 2013 Sales 7,035,600 COGS 5,875,992 Other expenses 550,000 EBITDA 609,608 Deprec. & amort. 116,960 EBIT 492,648 Interest exp. 70,008 EBT 422,640 Taxes 169,056 Net income 253,584 2012 6,034,000 5,528,000 519,988 (13,988) 116,960 (130,948) 136,012 (266,960) (106 784) (160,176) Balance Sheet: Assets Balance Sheet: Liabilities and Equity 2013 2012 2013 2012 Cash 85,632 7,282 Accts payable 436,800 524,160 300,000 A/R Notes payable 636,808 878,000 632,160 Accruals 408,000 489,600 Inventories 1.716,480 1.287,360 TotalCL 1,144,800 1,650,568 Total CA 2,680,112 1,926,802 Long-term debt 400,000 723,432 Fixed Assets 817,040 939,790 Common stock 1,721,176 460,000 Total Assets 3,497,152 2,866,592 Retained earnings 231,176 32,592 Total L & E 3,497,152 2.866,592 In 2012, assuming that Precision only had one Bond (Long Term Debt) out on the market, what Coupon Rate (or Bond Payment, or % Return) are they paying to bond investors annually? In 2012, assuming that Precision only had one Bond (Long Term Debt) out on the market, what Coupon Rate (or Bond Payment, or % Return) are they paying to bond investors annually? 10.62% 0 18.80% 15.07% 17.50% 12.75%