15. Firm X has a Return on Equity (ROE) equal to 10%, a total debt ratio equal to 0.6. If the firm has an fixed-asset turnover ratio of 0.54, what is its profit margin? a) 7.4% Ob) 3.08% w O c) d) 8.5% e) Cannot be determined 16. A company's 10 year bonds are ylelding 8,5% per year. Treasury bonds with the same maturity are yielding 6.9% per year, and the real risk-free rate (r) is 2.7%. The inflation premium is 3%, the liquidity premlum is 0.5%, and the maturity rlak premium is 1.2%. What is the default risk premium on the corporate bonds? b) 2.1% O ) 2.3% O d) 3.5% e) None of the above