Question 5 1 pts The Corner Burger Corporation faces cost of equity of 12.5% and after-tax cost of debt of 7.5%. It has perpetual EBIT of $32 million a year and has a $12 million perpetual interest expenses. The firm is subject to a 35% tax rate. What is the market value of Corner Burger Corporation in million dollars? 322 million O 275 million 264 million O 228 million Question 6 1 pts Alto Analysis has $8 millions of bond outstanding with a coupon rate of 9% and time-to maturity of 13 years. This bond is currently priced at $1,010 per $1,000 face value. The firm's tax rate is 35%. What is the annual tax shield for Alto Analysis? O $278,000 O $248,000 $228,000 O $198,000 Question 7 1 pts McDurham has sales of $400 million. Fixed operating costs are $95 million, and the variable cost ratio is 45 percent. McDurham has outstanding a $100 million, 11 percent bank loan and $130 million in 12 percent coupon-rate bonds. McDurham has outstanding 250,000 shares of preferred stock with a $7 dividend and 10 million shares of common stock. McDurham's tax rate is 35 percent. What is McDurham's degree of operating leverage at a sales level of $400 million? 1.96 1.76 ooo 1.56 1.36 Question 8 1 pts Following previous question, what is McDurham's degree of financial leverage? O 1.81 1.51 01.31 01.11