HIGHLIGHT ANSWERS

D. profitability. 5. What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? A. 8% B. 6% C. 11% D. 1090 6. How much more would you be willing to pay today for an investment offering $10,000 in 4 years rather than the normally advertised 5-year period? Your discount rate is 8%. A. $544.47 B. $681.48 C. $740.74 D. $800.00 Done 3 of 3 10 7, what is the WACC for a firm with 50% debt and 5096 equity that pays l 2% on its debt, 20% on its equity, and has a 40% tax rate? A. 16.0% B. 12.0% C. 9.6% D. 13.6% 8. Calculate the break-even level of sales, assuming $1.4 million fixed costs, $400,000 depreciation expense, and variable costs-to-sales ratio of65%. A. $2,769,231 B. $5,142,857 C. $4,000,000 D. $2,857,143 d machine that originally cost $75,000, has a book value of onnortunity cost for this