1A. Your company's interest expense for a loan borrowed to finance a project is $2,000,000. Given that the corporate tax rate is 20 %, what is the after-tax cost of this debt?

		$ 2,400,000
		$ 400,000
		$ 1,800,000
		$ 1,600,000

1B. Which of the following changes a firm's Beta?

		Changes in product line.
		Changes in technology.
		Changes in the market.
		All

1C. Which of the following is a non-systematic risk?

		Inflation risk
		Risk of unexpected strike by the employees of a company.
		Interest rate risk
		All

1D. If a security's Beta is equal to zero, then its rate of return is equal to the rate of return on the market portfolio.

True

False

1E. Systematic risk can not be eliminated by diversification.

True

False