25. Suppose you have a market value of equity equal to $1,700,300 and a market value of debt equal to $5,000,000. What is the capital structure weight for debt?

A) 34.0%

B) 25.4%

C) 67.5%

D) 74.6%

26. If the coupon rate is 8%, the YTM is 7.4% then what would be the semi-annual coupon?

A) $80

B) $40

C) $20

D) $1,000

27. If the yield curve is invertedthen this leading economic indicator indicates the that the economy is probably going to

A) slow down

B) be in a transition phase

C) head into an upturn

D) the yield curve is not a leading indicator of the economy.

28. Which of the following is false?

A) The COVID-19 is a systemic risk effect.

B) Auto Industry labor strike is a systemic risk effect.

C) Federal Reserve risk adjustments is a systemic risk effect.

D) Loss of management in a given firm due to COVID-19 is a systemic risk effect.

E) Both (B) and (D) are false.