1) In 2012 MSFT had sales of $70 billion and a net income of $23 billion, and its year-end total assets were $200 billion. The firm's total-debt-to-total-assets ratio was 39.5%. What was the ROE in 2012?
2) Adler Co currently has 21 long-term bond issues outstanding with various times- to-maturity and coupon rates. One of these bonds matures 15 years from today. It has a yield to maturity of 4.8%. For simplicity, assume that coupons are paid annually. The bond is currently selling for $1,105, based on a face (par) value of $1,000. What is the coupon rate?