1. The current yield is defined as the annual interest on a bond divided by which one of the following?
Coupon rate.
Face value.
Market price.
Call price.
Par value.
2. Castle Corp. generated $2 million in operating profits. The firm’s corporate tax rate was 40%. If the WACC was 12%, what was the value of the firm?
$12.3 million
$10 million
$16.7 million
$6.7 million