Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually. The bond is currently selling for $908.72 per $1000 bond. If the firm's marginal tax rate is 30%. What's the firm's after-tax cost of debt?________

		3.5%
		5.0%
		6.3%
		7.0%

A firm requires capital expenditure of $10 million, which will be raised by issuing $3 million of bonds, $1 million of preferred stock, and $6 million of new common stock. The firm estimates its after-tax cost of debt to be 6%, cost of preferred stock to be 8%, and cost of new common stock to be 15%. What is the weighted average cost of capital? _____

		9.67%
		10.25%
		12.85%
		11.60%

A firm sells 15,000 desks a year at an average price per desk of $200. The carrying cost per unit is $2.80. The company orders 200 doors at a time and has a fixed order cost of $45 per order. The desks are sold out before they are restocked. What is the economic order quantity? ________

		482 desks
		694 desks
		804 desks
		919 desks

A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year one, $55,000 in year two, $65,000 in year three, and $40,000 in year four. The firm's required rate of return is 9%. What is the payback period of this project? _______

		1.95 years
		2.46 years
		2.99 years
		3.10 years