You borrowed $25,000 in student loans for college. If the APR on the loan is 4.5%, compounded monthly, how much will be your monthly payment? Loan is scheduled to be paid off in 15 years. a) $191.25 b) $2,327.85 c) $138.89 d) $97.50 e) $1,125.41 Which of the following is NOT a use of a firm's free cash flows? Purchases of stocks and bonds of other firms and treasury securities. Paying interest/principal on debt. Paying dividends to existing shareholders. Purchasing the firm's own stock. Purchases of assets used in operations (fixed assets). Investment risk refers to the possibility of earning a return less than expected. a) TRUE b) FALSE Which of the following is a right generally belonging to owners of common stock? a) Dividend Rights b) Preemptive Rights c) All are rights d) Asset Rights e) Voting Rights The value of an asset can be determined by the size, timing, and certainty (risk) of its: a) trailing 12-month earnings. Ob) expected revenue. c) previous cash flows. d) expected future cash flows. e) future earnings. Detroit Rock City Music and More has noncallable bonds outstanding that mature in 20 years. The stated coupon rate is 9.25% and the bonds are currently valued at 107.5% of par value in the market. Assuming a par value of $1,000, what is the firm's after-tax cost of debt? Coupons are paid semiannually and the firm's tax rate is 40%. a) 5.08% b) 4.23% c) 4.83% d) 4.58% e) 8.46%