Task:
The given information lists the questions and gives background on the company in question.
I would appreciate very much if you could help me to get on the right track on what I have to do to get the right answer.
Questions:
Q1. How much would you pay for a $ 100,000 Raytheon bond today given risk, interest rate, inflation.
Q2. Based on the previous question, what would be your discount rate for this Bond? Use present value formula and show the work.
0.70 BETA
1.63 CURRENT RATIO
49.96 TOTAL DEBT TO EQUITY
3.30 SHORT RATIO
8.02 % PROFIT MARGIN
7.87% RETURN ON ASSETS
20.38% RETURN ON EQUITY