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1.) Your tuition for the coming year is due today. You borrow $10,000 from your uncle and you agree to repay in three payments of

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1.) Your tuition for the coming year is due today. You borrow $10,000 from your uncle and you agree to repay in three payments of $3,000 each, with the first payment coming one year from today. What is the interest rate on this loan? A. 2.41% B. 3.37% 2.48% D. 3.95% E. 4.13% 2.) To help finance a major expansion, Castro chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has 9.25% annual coupon, paid semiannually, sells at a price of $940, and has a par value of $1,000. The firms tax rate is 40%, what is the component after-tax cost of debt for use in the value calculation. A. 597% B. 6.21% C. 539% D. 6.09% E. 4.69% 3.) Kaiser Industries has bonds on the market making annual payments, with 15 years to maturity, par values of $1,000 and selling for $1,382.01. At this price, the bonds yield 7.5%. What is the coupon rate? A. 8% B. 850% C. 9.80% D. 12% E. 11.80% 4) A stock has a required return of 10%, the risk-free rate is 3.2%, and the market risk premium is 5%, what is the stocks beta? A. 1.08 B. 1.16 C. 1.29 D. 1.32 E. 1.36 1 of 1 211 words English (United States) Focus

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