1. You want to make a statement about the variability in the costs of personnel shelters. After collecting sample data (cost in $K) on 14 shelters you perform some preliminary calculations.
[Image Description: Summation of (Xi - Xbar)2 =545.50]
Given the information provided, the standard deviation is:
$ 6.24K
$41.96K
$38.96K
$ 6.48K
2. Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $1,863 and matures in 21 years. The par value is $2,000 and the company's tax rate is 40 percent. What is the company's aftertax cost of debt?
A. 7.22%
B. 4.33%
C. 4.00%
D. 6.74%
E. 4.59%