1. What is the difference between cross sectional and benchmarking analysis ?
2. A firm has $5,500,000 in its common stock account and $55,000,000 in its paid-in capital account. The firm issued 500,000 shares of common stock. What is the par value of the common stock?
3. A 10-year circular file bond with a face value of $1,000 pays interest once a year of $55 and sells for $984. A. What are its coupon rate and yield to maturity? B. If Circular wants to issue a new 6-year bond at face value, what coupon rate must be offered?