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please answer all 36 Long-term deb ypialy describes a) coupon debt only. b) debt with a maturity greater than one year. c) privately traded debt

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36 Long-term deb ypialy describes a) coupon debt only. b) debt with a maturity greater than one year. c) privately traded debt d) publicly traded debt. Maloney's, Inc. has found that its cost of common equity capital is 6 percent and its cost of debt capital is 4 percent. The firm is financed with $9,$00,000 of common equity (market value) and $1,000,000 of debt. tax rate? a) 2.74% b) 37. What is the after-tax weighted average cost of capital for Maloney's if it is subject to a 40 percent marginal c) d) 3.96% 566% 5.81% 38. Ewing Drilling, Inc. has a beta of 1.02. If the risk-free rate of retarn is 3.75 percent and the expected return on the market is 103 percent, what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 40 percent 9.70% 14,26% c) d) 10.43% 626% a) b) 39. Which one of the following statements is NOT trae about common stock? a) b) Owners of common stock are guaranteed dividend payments by the firm. c) Common-stock hoilders have the right to vote on the selection of the board of directors for Common-stock holders have limited liability the firm d) Common stock is considered to have no fixed maturity 40. Briar Corp is issuing a 10-year hond with a coupon rate of 6.50 percent. The interest rate for similar bonds is currently 11.00 percent. Assuming annual paymeets, what is the present value of the bond? a) $734.98 b) $668.83 c) $698 23 d) $1,323.50 41. In a game of chance,the probability of winning a $3ins is 2rcnt d the probubiy of winning 560 prise is 75 percent. What is the expected value of a prize in the game? a) $53.75 b) $36.25 c) $68.25 d) $41.25

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