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Market value of equity and annual sales

I am having a problem answering the following two questions.. can any one please help me???

(Complete problem found in attachment)

Morgan Inc (MI) bonds pay $110 annually, have 6 years until they mature and have a YTM of 9%. Book value of the bonds is $6.5 million. D/E ratio is 1.6. What is the market value of the equity?

What are the annual sales for a firm with $400,000 in debt, a total debt ratio of .4, and an asset turnover of 3.0?


Solution Summary

The solution has two problems dealing with the calculation of market value of equity and total annual sales.