1. A tax-exempt municipal bond with a coupon rate of 7.00% has a market price of 98.82% of par. The bond matures in 5.00 years and pays semi-annually. Assume an investor has a 21.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's yield to maturity was more than _____%

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

2. A taxable bond with a coupon rate of 5.00% has a market price of 99.29% of par. The bond matures in 16.00 years ans pays semi-annually. Assume an investor has a 21.00% marginal tax rate. The investor would prefer otherwise identical tax-exempt bond if it's yield to maturity was more than _____%

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

3. A firm issues preferred stock with a dividend of $4.03. If the appropriate discount rate is 5.58% what is the value of the preferred stock?

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Answer format: Currency: Round to: 2 decimal places.

4. The market price of a share of preferred stock is $22.30 and the dividend is $2.88. What discount rate did the market use to value the stock?

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

5. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.13 million and create incremental cash flows of $529,015.00 each year for the next five years. The cost of capital is 8.50%. What is the net present value of the J-Mix 2000?

Answer format: Currency: Round to: 2 decimal places.

6.Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.74 million and create incremental cash flows of $522,746.00 each year for the next five years. The cost of capital is 8.87%. What is the profitability index for the J-Mix 2000? Answer format: Number: Round to: 3 decimal places.