1. The before-tax cost of debt is 18.9 percent. What is the after-tax cost of debt if the tax rate is 49 percent??

2. You have $1,000 today and want to double your money in 8 years. What interest rate must you earn?

9.25%

9.00%

9.05%

9.50%

9.12%

3. A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

10.50 percent

7.5 percent

7.75 percent

11.11 percent

5.36 percent