1. Precious Metal Mining has $6 million in sales, its ROE is 15%, and its total assets turnover is 3.2x. Common equity on the firm’s balance sheet is 80% of its total assets. What is its net income?
2. IBMs bonds have 5 years remaining to maturity. Coupons are paid semi-annually. The bonds have a $1000 par value, and the coupon rate is 5%. The current price of the bonds is $1050. What is their yield to maturity?