PLEASE ASSIST WITH QUESTIONS A, B, C:

A. In some cases for equity valuation, Price Earnings ratios are not available, for example, with internet startups with no earnings, or with negative earnings. What is a substitute comparative valuation ratio for P/E that might be used in such an instance?

sales figures

net income

price to sales ratio

cash flow coverage ratio

none of the above

B. A 10-year, 10% bond issued by the State of Missouri to help build a bridge to St. Charles would have the following equivalent taxable yield if you are in the 34% tax bracket:

3.40%

29.4%

6.6%

15.1%

Impossible to determine

C. A difference between zero-coupon bonds and regular debt is that:

the risk is often less on a zero coupon bond

the need to report taxable income on earnings is more attractive for the zero-coupon bond

Zero coupon issues are more common than standard bond issues, so more market liquidity

They are sold at a large discount to par value