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Question 1: A firm has the following book-value balance sheet; Debt =$ 2 ,000, Common Stock ($1 par)= 486 and Retained Earnings = $ 28 ,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for $ 1,134 and the firm's stock is currently selling for $ 55 . The firm's tax rate is 25 . What is the firm's market value? Show your answer to the nearest $1. Do not use commas or the $ sign in your answer.

Question 2: A firm has the following book-value balance sheet; Debt =$ 16 ,000, Common Stock ($1 par)= 401 and Retained Earnings = $ 14 ,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for $ 1,274 and the firm's stock is currently selling for $ 26 . What is the firm's market value leverage ratio? Show your answer to the nearest .1%, but do not use the % sign. Write your answer as whole numbers rather than decimals, thus do not write .502 or 50.2%, but rather write 50.2.

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