*Question Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal y capital shares have a beta equal to 2.5 while the risk-free expected return on the market is 14 percent. It has 7-year semiannual maturity DC outstanding with a price of $1,050 that have a coupon rate of 7 percent. The firm is finance common shares (market value) and $80 million of debt. What is the after-tax weighted average cos pon rate of 7 percent. The firm is financed with $120 million of if it is subject to a 35 percent marginal tax rate? Round your final percentage answer to three de nat is the after-tax weighted average cost of capital for Droz's, A. 14.952% B. 13.371% C. 12.266% D. 15.389% *Question Your mother is trying to choose one of the following bank CDs to deposit $10,000. Which one will have the highest future value if he plans to invest for five years? A. 5.62% compounded annually B. 5.50% compounded daily C. 5.52% compounded monthly D. 5.56% compounded semi-annually *Question Inhocheon offered a 15-vear bond issued by Barone, Inc., at a price of $943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Bond has a face value of $1,000. Similar bonds in the mi percent today. What are the cash flows from this bond? A. $90 coupon payment annually and 943.22 at maturity B. $45 coupon payment semi-annually and 943.22 at maturity C. $50 coupon payment annually and $1000 at maturity D. $45 coupon payment semi-annually and $1000 at maturity