Qestion 18 Assume that Frank Inc. has nanced its assets with 25% debt and T5% equity. Its after-tax cost of debt is 3% and its cost of equity 10%. What is the company's weighted average cost of capital? Question 19 which of the following companies is most likely to have a negative beta: (:9 Treasury bills A nationwide chain of bankruptcy attorneys located in most major cities A grocery store chain ([9 A leading retailer who holds an anchor position in a large number of mail locations nationally G) A company that sells pharmaceuticals that a wide variety of patients need on a daily basis Question 20 Which of the statements below could be a plausible debt covenant to a corporate loan? (19 The rm should distribute its cash balance as dividends at the end of each year The rm should keep a ratio of liabilities to equity' below 2:1 The rm cannot raise additional funds from equity investors The rm should keep a current ratio of zero (9 All answers listed Question 21 You know that the return of Smooth Operator Inc. common shares is 0.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 1.90 percent and market risk premium is 6.45 percent. what is Smooth Operator's cost of common equity capital? (39 None of the answers listed