1.purchased a disco mirror that currently has a book value of $10,000. If builitrite sells the disco mirror today, then what is the amount of cash that will net after taxes if the firm is subject to a 39% marginal tax?

2.purchased a truck a few years ago that currently has a book value of $1,000. If the firm sells the truck for $5,000 today, then what is the amount of cash that it will net after taxes if the firm is subject to a 30% marginal rate?

3.builtrite is planning on offering a $1000 par value, 20 year, 7% coupon bond with an expected selling price of $1025. Floation cost would be $55 per bond. Preferred stock: builtrite could sell a $46 par value prefered with a 7% coupon for $38 a share. Flotation cost would be $4 ashare. Common stock: currently the stock is selling for $62 a share and has paid a $3.82 dividend. Dividends are expected to continue growing at 12%. Flotation cost would be $3.75 a share and builtire has $350,000 in avalible retained earnings. Assume a 30% tax bracket. Their after tax cost of debt is?