Question 1 Laura has $10 million in invested capital, $4 million in EBIT, and is in the 50% federal- plus-state tax bracket. Laura has a 30% debt-to-capital ratio and pays 10% on its debt. What is the ROE for Laura? O 19.65% O 12.14% O 26.43% Question 2 O 2.80% KSS has $1000 par value bonds with a 9% coupon rate and coupons paid semi-annually. that mature in 25 years. The bonds are selling for $1,050. KSS has an average tax rate of 30%. KSS is in the 40% marginal tax bracket. What is the after-tax cost of debt? O 3.95% O 5.11% Question 3 4 pts O 14.0% O 16.6% 4 pts KSS common stock has a beta of 1.2. The market long term expected return is 12% and the risk-free rate is 2%. What is the cost of retained earnings? O 22.0% 4 pts