Marvins Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,800, a 7.0 percent, semiannual coupon, and a current market price of $1,389. What is the pre-tax cost of debt?

Multiple Choice:

• 12.53 percent

• 13.28 percent

• 14.23 percent

• 13.79 percent

The Up and Coming Corporation's common stock has a beta of 1.4. If the risk-free rate is 3.5 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital?

Multiple Choice

• 16.8%

• 17.64%

• 17.47%

• 15.96%

• 21.7%

Six months ago, you purchased 1,500 shares of ABC stock for $35.81 a share. You have received dividend payments equal to $0.70 a share. Today, you sold all of your shares for $38.95 a share. What is your total dollar return on this investment?

Multiple Choice

• $4,710

• $11,520

• $1,050

• $5,760

• $6,729