What is the after tax cost of debt on a $500,000 loan given a 7% interest rate and 35% tax bracket?;Answer;$22,750;2.45%;4.55%;$35,000;You are considering a new investment. The rate on T-bills is 3.3% and the return on the S&P 500 is 10.5%. You have measured the non-diversifiable risk of the investment you are considering to be.7. What rate of return will you require on the investment?;Answer;5.04%;5.28%;8.34%;13.80%;2.35%
Cost of Capital
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