1. Who will win the NCAA Tournament? 1.North Carolina 2.Kansas 3.Memphis 4.UCLA 5.I don’t care

2. An investor who invests in a bond will receive a yield-to-maturity (YTM). From a company perspective, this is the _______________ 1.Before Tax Cost of Debt 2.After Tax Cost of Debt 3.Before Tax Cost of Equity 4.After Tax Cost of Equity

3. The reason why there is before tax and after tax cost of debt is because 1.Dividends are tax deductible 2.Interest expense is tax deductible 3.There is a capital gains tax on profits from the sale of stock

4. Before tax cost of equity = after tax cost of equity = cost of equity because 1.Dividends are not tax deductible for the company 2.Stock gains the investors make are not tax deductible for the company 3.1 and 2 4.None of the above

5. Cost of Capital is important because 1.It is compared to the IRR to determine whether a capital budgeting project should be accepted 2.It is used as the discount rate (“I”) when using NPV analysis to determine whether a capital budgeting project should be accepted 3.Both 1 and 2 4.None of the above