1. Book Depot Inc. sells on terms of 2/15, net 90. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round the answer to two decimal place
2. New companies outstanding bonds have a $50,000 par value, 6.25% semi annual coupon, 15 years to maturity, and a 6% yield to maturity. What is the bonds price?
3. A proposed new investment has projected sales of $670,000. Variable costs are 55 percent of sales, and fixed costs are $156,000; depreciation is $57,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.)
Sales: $
Variable costs:
Fixed costs:
Depreciation:
EBT: $
Taxes:
Net income $