1. Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000. This bond matures in one year. Currently, U.S. Treasury bills are yielding 5.5 percent. What is the value of the equity in this firm?
$7.89
$6.67
$7.08
$6.98
$7.24
2. Explain how the following ratios are computed Percentage change in net income from the prior year
Gross profit rate
Operating income
Net income as a percentage of net sales
Earning per share
Return on assets
Return on stockholders' equity