If the bond interest rate is 10%; the risk-free rate is 4%; tax rate is 30%:

then the bond cost equals:

Select one:

a. 10%

b. 7%

c. 14%

d. 6%

If the market portfolio return is 12%; the risk-free rate is 4%; beta equals 1.5. Then the required rate of return and the risk premium, respectively, are:

Select one:

a. 6%; 16%

b. 12%; 8%

c. 8%; 8%

d. 16%; 8%

Factoring will be plausible when:

Select one:

a. Factoring benefit s exceeds factoring costs

b. Factoring benefit s the cost of capital of the firm

c. Factoring benefit s less than factoring costs

d. Factoring benefit s equals factoring costs

The cost of equity might be computed as:

Select one:

a. All the answers are correct

b. Required rate of return by owners

c. According to CAPM

d. The dividend yield

If the equity return is 10%; risk-free rate is 4%; beta equals 2. then the market portfolio return and the risk premium, respectively, are:

Select one:

a. 3%; 7%

b. 10%; 3%

c. 7%; 3%

d. 3%; 10%

Please add explanation.