What is the firm debt ratio

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Reference no: EM131826161

1. Dearborn Supplies has total sales of $194 million, assets over $101 million, a return on equity of 26%, and a net profit margin of 7.2%. What is the firm's debt ratio?

The company's debt ratio is______%.

2. An investor considers the purchase of a 2-year bond with a 5% coupon rate, with interest paid annually. Assuming the sequence of spot rates shown below, what is the price of the bond?

Time-to-Maturity Spot Rates

1 year 3%

2 years 4%

Please Show Work and Explain.

Reference no: EM131826161

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