1. Describe the three categories of ratios used in ratio analysis. When working on assessing General Motors, which of these ratios do you think is the most important indicator of successful performance, why?
2. BA Corp is issuing a 10-year bond with a coupon rate of 8.06 percent. The interest rate for similar bonds is currently 4.70 percent. Assuming annual payments, what is the value of the bond? (Round answer to 2 decimal places, e.g. 15.25.)
3. DEF is trading at $81.75. You buy a June call and put with a X = $80 on a DEF. The call costs $4 while the put is a $1. What is/are the breakeven points? What is your maximum loss? The stock falls to $71. What is your loss or gain?