1. Long term assets are recorded at (choose one): cost of the asset only, cost of the asset plus all costs necessary to get the asset ready for use, appraised value, or cost of the asset, but subsequently adjust it up or down to appraised value.

2. The required rate of return is 23.85 percent. Ninex Corp. has just paid a dividend of $3.12 and is expected to increase its dividend at a constant rate of 8.70 percent. What is the expected price of the stock three years from now? (Round answer to 2 decimal places, e.g. 15.20.)

3. The XYZ Inc.'s currently outstanding bonds have a 10 percent yield to maturity and an 8 percent coupon. It can issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40 percent, what is XYZ's after-tax cost of debt?