Treasury bills currently have a return of 2.5% and the market risk premium is 9%. If a firm has a beta of 1.0 and a tax rate of 40%, its required rate of return on its equity is greater than but less than or equal to Choose the range that includes the correct answer. 0%; 9% 9%: 10% O 10%; 11% O 11%: 12% O 12%: 25% Your company just bought some new industrial equipment for $160,000. This particular industrial equipment has a 5-year class life and the company uses MACRS to depreciate their assets. If the equipment will be sold 7 years from today for $20,000, what is the after-tax cash flow from the sale of the equipment? Assume the tax rate is 40%. O $20,000 $15.200 O $12,000 $13,600 None of the above are correct Smackdown Inc. has a bond outstanding with a 7% annual coupon rate, a market price of $1,050, and a face value of $1,000. If the bond matures in 12 years and interest is paid on a semi-annual basis, what is the annual YTM? Assume the next coupon payment will occur in 6 months. The YTM is less than 3% The YTM is equal to or greater than 3% but less than 4%. The YTM is equal to or greater than 4% but less than 5% The YTM is equal to or greater than 5% but less than 6%. The YTM is equal to or greater than 6%