If wild widgets, inc., were an all-equity company, it would have a beta of 1.20. the company has a target debt-equity ratio of .70. the expected return on the market portfolio is 10 percent and treasury bills currently yield 3.5 percent. the company has one bond issue outstanding that matures in 30 years, a par value of $1,000, and a coupon rate of 6.4 percent. the bond currently sells for $1,070. the corporate tax rate is 22 percent. what is the company’s cost of debt?

1. what is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually? $8.00 $4.08 $8.16 $4.00 2. what is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually? $24.00 $8.00 $16.64 $25.97 3. a business just took out a loan for $100,000 at 10% interest. if the business pays the loan off in three months, how much did the business pay in interest? $2,500.00 $10.00 $250.00 $10,000.00 4. what is the annual percentage yield (apy) for a deposit paying 5 percent interest with monthly compounding? 5.00% 5.12% 79.59% 0.42%