Part $1.$ Which of the following statements regarding a firm$$s after$-$tax cost of debt is accurate?

A$.$ It is equal to the coupon rate on the latest bonds issued by the company$$

B$.$ It is based on the current yield to maturity of the company's outstanding bonds times $(1-$tax rate$)$

C$.$ It must be estimated as it cannot be directly observed in the market$$

D$.$ It is based on the original yield to maturity on the latest bonds issued by a company$$

E$.$ It is based on the current yield to maturity of the company$$s outstanding bonds.

Part $2.$ A stock has a beta of $1\mathrm{.}3$ and an expected return of $13\mathrm{.}2$ percent. A risk$-$free asset currently earns $1\mathrm{.}2$ percent. The beta of a portfolio comprised of these two assets is $$4.$ What percentage of the portfolio is invested in the stock?

A$.84\%$

B$.87\%$

C$.68\%$

D$.72\%$

E$.63\%$

Part $3.$ Arnold Belt and Bearing has identified two mutually exclusive projects. Project A has cash flows of $$ $$40,000,$ $$21,200,$ $$16,800,$ and $$14,000$ for Years $0$ to $3,$ respectively. Project B has a cost of $$38,000$ and annual cash inflows of $$25,190$ for $2$ years. At what rate would you be indifferent between these two projects?

A$.-4\mathrm{.}38\%$

B$.9\mathrm{.}41\%$

C$.-1\mathrm{.}72\%$

D$.6\mathrm{.}34\%$

E$.8\mathrm{.}28\%$