1. Tuchman Corporation has sales of $1,200,000 and an inventory turnover of 20. The firm’s current ratio is 4.0, while its quick ratio is 2.5. What are Tuchman’s current assets?
2. You own a two year, semi annual 10000 par bond with a coupon of 6.9% The market yeild is 5.1%. Calculate the bonds Macaulay duration.
3. Discuss the rationale of using WACC in evaluating the investment.