Dearborn supplies has total sales of 194 million assets


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%

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Financial Management: Dearborn supplies has total sales of 194 million assets
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