The before-tax cost of debt for a firm which has a 40 percent marginal tax rate is 12 percent. The after-tax cost of debt is
4.8 percent
6.0 percent
7.2 percent
12 percent
If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of
constrained capital
wealth optimization
capital rationing
profitability
________ are obligations of the U.S. Treasury with common maturities of one to seven years and that are generally issued in minimum denominations of $5,000.
Treasury notes
Treasury bills
Federal agency issues
Banker's acceptances