1) If Thomas has a 37 percent tax rate and a 5 percent after-tax rate of return, $63,500 of income in five years will cost him how much tax in today's dollars?

2) Assume that Larry's marginal tax rate is 24 percent. If corporate bonds pay 7.2 percent interest, what interest rate would a municipal bond have to offer for Larry to be indifferent between the two bonds?

3) Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 25 percent. If a corporate bond pays 9.6 percent interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective?

4) Assume that Juanita is indifferent between investing in a corporate bond that pays 9.80 percent interest and a stock with no growth potential that pays a 7.00 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Juanita's marginal tax rate?