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 12%. What is the WACC?
a. 10.15%
b. 9.24%
c. 11.41%
d. 10.99%
e. 11.84%
2. Today, your grandmother gave you a gift of $22,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8% interest 11 years ago. How much did your grandmother originally invest?
a. $9,225.00
b. $9,435.42
c. $9,504.55
d. $9,192.45
e. $9,419.25