1. Gerry Co. has sales (revenue) of $1,000,000 and $240,000 in expenses (COGS and SG&A). Depreciation expense is $360,000. Given that the tax rate is 40 percent, compute the cash flow for Gerry Co.
$240,000
$456,000
$600,000
$750,000
2. If a 10-year bond has a 8% coupon rate, and a 12% yield-to-maturity, then the bond's price is:
less than par
equal to par
greater than par