1. For firms subject to the 40% marginal tax rate, the after-tax cost of ____ is roughly three-fifths the cost of preferred stock.
A. long-term debt
B. retained earnings
C. None of these are correct
D. new common stock
2. In no less than 200 words, explain what it means to be a contrarian investor, and how a contrarian investor would use technical analysis.
3. Tim took a loan of 200000 to buy an apartment in the downtown. The bank offered the loanwith an APR of 16% compounded quartely payable in 25 annual installments.
Compute the effective interest rate per payment period.