31.

Corporation X needs $1,000,000 and can raise this through debt at an annual rate of 6 percent, or preferred stock at an annual cost of 8 percent. If the corporation has a 21 percent tax rate, the

afterdash-tax

cost of each is ________.

A.

debt: $60,000; preferred stock: $63,200

B.

debt: $47,400; preferred stock: $63,200

C.

debt: $47,400; preferred stock: $80,000

D.

debt: $60,000; preferred stock: $80,000

32.

The nominal, risk-free rate on T-bills recently is

4.954.95%.

If the real rate of interest is

1.151.15%,

what is the expected level of inflation?

The expected level of inflation,

IPIP,

is

nothing%