Calculate the current value of bond

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Question: TuPont Corp. has net income of $1.95 million, an asset turnover of 2.0, and $14 million in total assets, of which $7 million is debt. Use the Du Pont system to calculate its ROE, decomposed into ROA, Total asset turnover, profit margin, and the equity multiplier.

22. Johnson's Nursery has net income of $42,500, depreciation expense of $1,800, interest expense of $900, taxes of $1,600, additions to net working capital of $2,300, and capital expenditures of $11,700. What is the amount of the free cash flow?

(a) Calculate the current value of Bond L. (See Table above)

(b) What will happen to the value/price as the bond approaches maturity?

Reference no: EM131924953

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