11) The major securities traded in the capital markets a A) Treasury bills and certificates of deposit. C) commercial paper and Treasury bills. tocks and bonds. D) bonds and commercial paper. 12) The average tax rate of a corporation with ordinary income of $8,000 and a tax liability of 12) $24,200 isn %. 13) a.- 13) Corporation X needs $1,800,000 and can raise this through debt at an annual rate of 10%, or preferred stock at an annual cost of 7%. If the corporation has a 35 % tax rate, what is the after-tax cost of a) debt and b) preferred stock? b. seo 14) Meese Paper Distributors, Inc. has before-tax earnings of $13,000,000. Using the Corporate 14) Tax Rate Schedule, calculate the amount of the total tax liability. 15) The analyst should be careful when conducting ratio analysis to ensure that 15) C A) the same accounting procedures were used. B) the overall performance of the firm is not judged on a single ratio. he dates of the financial statements being compared are the same. D) audited statements are used. E) all of the above. the current ratio eris the firm's liquidity. 6 plue the higher is the firm's liquidity