1. The before-tax cost of debt is 18.9 percent. What is the after-tax cost of debt if the tax rate is 49 percent??
2. You have $1,000 today and want to double your money in 8 years. What interest rate must you earn?
9.25%
9.00%
9.05%
9.50%
9.12%
3. A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?
10.50 percent
7.5 percent
7.75 percent
11.11 percent
5.36 percent