An asset costs $100,000 and is depreciated straight-line to zero over its 4 year life. The asset will be used for a three-year project and after 3 years it will be sold for $30,000. If the tax rate is 35%, what is the after-tax cash flow from the sale of the asset? $30,000 $15,250 $28,750 $34,750 Martin Chemicals has a target debt to equity ratio of 0.50. Its cost of equity is 12%, after-tax cost of debt is 8%, and tax rate is 40%. What is the company's WACC? 7.68% 9.60% 9.30% 10.67% Which one of the following comparisons between debt and equity is correct? Stockholders are the owners of the firm and vote on all major decisions. The stockholders have first claim to the firm's assets and are the owners. The creditors are the firm's owners and they have a higher claim to the firm's assets than do the stockholders. Both creditors and stockholders vote to elect the board of directors. The financial statement that summarizes a firm's operations over a period of time is called a(n) cash flow statement. income statement. balance sheet. periodic operating statement