1) The Corner Bakery has a debt-equity ratio of .62. The firm's required return on assets is 14.2 percent and its cost of equity is 16.1 percent. What is the pretax cost of debt based on M&M Proposition II with no taxes?

A7.10 percent

B11.14 percent

C18.40 percent

D17.56 percent

2)How many euros can you get for $2,500 if one euro is worth $1.2803?

A 2,676.67

B 1,638.09

C 1,952.67

D 3,361.91

3) You are considering a project in South Africa which has an initial cost of R385,000. The project is expected to return a one-time payment of R428,900 four years from now. The risk-free rate of return is 3.5 percent in the U.S. and 2.4 percent in South Africa. The inflation rate is 4 percent in the U.S. and 3 percent in South Africa. Currently, you can buy R10.48 for $1. How much will the payment of R428,900 be worth in U.S. dollars four years from now?

A$44,357

B $47,251

C $42,777

D $40,560