1. Based on the corporate valuation model, Entertainment's total corporate value is $1,500 million. The company’s balance sheet shows $120 million of notes payable, $300 million of long-term debt, $50 million of preferred stock, $180 million of retained earnings, and $800 million of total common equity. If the company has 30 million shares of stock outstanding, what is the best estimate of its price per share?
2. Morin Company’s annual bonds mature in 8 years, have a par value of $1,000, and currently sells for $903.04. The market requires an interest rate of 8.2% on these bonds. What is the bond’s coupon rate?