7) A The price at which an option can be exercised is called the: a. premium. b. spot rate. c. strike price. d. commission. 8) Which of the following is NOT an example of a cash flow statement? a. Dividend paid b. Interest paid c. Rent and lease payments d. Principal payments 9) The after-tax cost of debt is calculated by: a. Dividing the before tax cost of debt by (1 tax rate) b. Subtracting (1 - tax rate) from the before tax cost of debt c. Multiplying the before tax cost of debt by (1 - tax rate) d. Subtracting the tax rate from the before tax cost of debt 10) Which of the following is not a key variable in the weighted average cost of capital (WACC) equation? a. Market value of equity b. Market value of debt c. Marginal tax rate d. The risk free rate of return