37)Someone borrows $3,000 for 90 days and pays $35 interest. What is their annual rate of interest? A) 1.2% B) 3.5% C) 4.7% D) 11.7% 38)Ms. Smith borrowed $1,250 at an 11% stated rate of interest and was to pay back the instalment loan in 24 monthly payments. What is her annual rate of interest? A) 10.56% B) 11.60%. C) 18.96% D) 22.00% 39)A firm's debt to equity ratio varies at times because: A) a firm will want to sell common stock when prices are low and bond when interest rates are high. B) a firm will want to take advantage of timing its fund raising in order to maximize costs over the long run. C) the market allows no leeway in the debt to equity ratio before penalizing the firm with a higher cost of capital. D) a company will sell bonds when interest rates are low and stock prices are high. 40)A firm's stock is selling for $85. The dividend yield is 5%. A 7% growth rate is expected for the common stock. The firm's tax rate is 32%. What is the firm's cost of common equity? A) 8.16