1. Christina Aguilera Inc. has sales of $15.5M, total assets of $8.7M, and total debt of $4.1M. If the profit margin is 7%. What is the Net income? What is the ROA? What is the ROE?
2. The property maintenance firm, Lawn and Order, issued 15 year bonds 3 years ago. These bonds pay a 6% coupon. They currently sell for $11 50, what is the YTM on these bonds?
3. Bing Crosby Homes has a debt to equity ratio of 1.5. It's WACC is 9.1% and it's cost of debt is 5.5%. There is no corporate debt. What is the cost of equity?