26.

The face value of Charni Road debt is $2,000. The debt sells in the market for $1,905; makes semi-annual payments, and has a coupon of 6.5 percent. If the debt matures in 15 years, what is Charni Road's after tax cost of debt if the tax rate is 40 percent?

rev: 10_03_2018_QC_CS-141599

Multiple Choice

• 3.51%

• 4.46%

• 4.21%

• 3.89%

• 3.27%

What is Pydhonie's debt to equity ratio if its WACC is 12.5 percent; the cost of equity is 16.5 percent; and its cost of debt before taxes is 7.5 percent. Assume that Pydhonie has a tax rate of 34 percent.

Multiple Choice

• 0.5563

• 0.551

• 0.8

• 0.5298

• 0.5033

24.

What is the Modified Internal Rate of Return of Mazgaon using the reivestment approach if the nterest rate is 10 percent?

Year	Cash Flows
0	$27,700
1	10,900
2	23,100
3	10,140
4	3,950

Multiple Choice

• 15.71%

• 21.26%

• 23.39%

• 13.10%

• 18.22%