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# 30. A project's cash flows have a beta of 1.2, a standard deviation of \$200, and a coefficient of variation of 0.40. What is the expected cash flow?

30. A project's cash flows have a beta of 1.2, a standard deviation of \$200, and a coefficient of variation of 0.40. What is the expected cash flow?
a) \$80
b) \$167
c) \$240
d) \$500
37. The coupon rate on a debt issue is 12%. If the yield to maturity on the debt is 9.33%, what is the after-tax cost of existing debt if the firm's tax rate is 34%?
a) 3.17%
b) 4.08%
c) 6.16%
d) 7.92%
38. Assume a project has earnings before depreciation and taxes of \$10,000, depreciation of \$40,000, and that the firm has a 30 percent tax bracket. What are the after-tax cash flows for the project?
a) \$47,000
b) \$19,000
c) a loss of \$21,000
d) none of the above
39. You require an IRR of 13% to accept a project. If the project will yield \$10,000 per year for 6 years, what is the maximum amount that you would be willing to invest in the project?
a) less than \$25,000
b) more than \$25,000 and less than \$30,000
c) more than \$30,000 and less than \$35,000
d) more than \$35,000

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