Question 16 (3 points) If a firm sells an asset for less than its book value, the loss may be used to offset operating income there are no tax consequences the loss is treated as lost depreciation the loss reduces depreciation expenses Question 18 (3 points) The October Corporation's common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 14.62%. determine the cost of equity capital for the firm (using the CAPM). 7.6% 14.1% 13.0% 6.5% Question 19 (3 points)