1. If a corporation has a life insurance policy on a key employee and receives a cash payout when the employee dies, is this considered taxable income?
2. Assuming a company has a capital structure which is 60% stock and 40% bonds, and the company has a cost of debt of 8%, and a cost of equity of 10%, and the company's tax rate is 25%; what is the company's WACC?
3. If a bond currently sells for $1,120, and it has a 15 year maturity, and an annual coupon of $85 and a par value of $1000: What is the yield to maturity?