Question 13 Not yet answered Marked out of 1 P Flag question Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. The corporate tax rate is 34%. The cars belong in CCA class 10 (a 3096 class). What is the break-even lease payment? Select one: a. $55,000 b. $57,705 c. $47,328 d. $56,128 e. $35,675 Question 14 Not yet answered Marked out of 1 P Flag question Afirm has a WACC of 12%. It is financed with 40% debt and 60% equity. The firm's cost of debt is 10% and its tax rate is 40%. What is the cost of equity? Select one: a. 1096 b. 14% C. 12% d. 16% e. 18% Question 15 Not yet answered Marked out of P Flag question Suppose that Topstone Industries has a cost of equity of 14% and a cost of debt of 9%. If the target debt/equity ratio is 75%, and the tax rate is 34%, what is Topstone's weighted average cost of capital (WACC) Select one: a. 6.6% b. 10.9% c. 7.9% d. 10.5% e. 8.4% Question 16 Not yet answered Marked out of 1 P Flag question Your company needs some research equipment which belongs to Class 10 (CCA Rate 30%). The cost of the equipment is $850,000. You can borrow at 12% and the tax rate is 34%. You can lease the equipment for $270,000 a year for four years. It has no salvage value. What is the net advantage to leasing? Select one: a. -$8,352 b. $9,336 C. -$204,446 d. $38,477 e. -$132,000