Defined as the annual interest on bond divided

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Reference no: EM131599928

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

Reference no: EM131599928

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