Question 23 3 pts A firm's overall cost of capital: is another term for the firm's internal rate of return varies inversely with its cost of debt. is the same as the firm's return on equity. is unaffected by changes in the tax rate. the required return on the total assets of a firm, Question 24 3 pts In an efficient market, a security with a beta of.98 will have a rate of return which lies: on the SML just to the right of the market return. just below the security market line (SML) and to the left of the market return. on the SML just to the left of the market return. just below the SML and to the right of the market return above the SML just to the right of the market return. Question 25 3 pts Which one of the following will increase the slope of the security market line (SML)? an increase in the beta of a firm an increase in the market risk premium a decrease in the market rate of return a decrease in the intercept point an increase in the risk-free rate of return Question 26 3 pts The Bigelow Company has a cost of equity of 12 percent, a pre-tax cost of debt of 7 percent, and a tax rate of 35 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is.50? 11.11 percent 6.58 percent 9.21 percent 10.13 percent 9.52 percent