1. A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1,100, and an unlevered return of 13%. What is the WACC?
a. 11.41%
b. 9.74%
c. 11.84%
d. 9.24%
e. 10.99%
2. Today, your grandmother gave you a gift of $25,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 7.2% interest 14 years ago. How much did your grandmother originally invest?
a. $9,192.45
b. $9,445.24
c. $9,225.00
d. $9,373.49
e. $9,504.55