1. Bass Unlimited has a debt ratio of 0.60. What is the company’s equity multiplier?
2. You are given a bond with a par value of 100 USD. This bond will take twenty years for it to mature. Each year the coupon for this bond is at ten percent. Each year the interest is at five percent.
What is the modified duration if the coupon is made twice a year?
3. IHOP Inc. has total assets of $743.00 million, total debt of $443.00 million, and net sales of $288.00 million in the past year. Its net profit margin for the past year is 8.00%, while the operating profit margin is 16.00%.
What is IHOP’s net income for the past year?
(Answer in terms of millions, 1,000,000 would be 1.00)