1. Ajax Corp's sales last year were $430,000, its total operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?
A) 5.7
B) 5.4
C) 5.5
D) 5.3
E) 5.6
2. The real risk- free rate is 3.05%, inflation is expected to be 2.85% this year, and the maturity risk premium for a treasury bond in 0.3%. what is the interest rate on this bond?
A) 6.90
B) 6.20
C) 5.90
D) 3.05
E) 5.20