1. Macro Chip Inc. has a target capital structure with 30% long-term debt, 5% short-term debt, 5% preferred stock, and 60% common equity. Before-tax cost of long-term debt, r, is 10%, before-tax cost of short term debt is, r_sro is 7%, cost of preferred stock, r_PS is 8.25%, cost of common equity, r_s is 13%. If the marginal tax rate is 25%, what is the weighted average cost of capital? A. 10.05% B. 11.5625%

c. 10.725%

D. 9.355%

2. Orange Company stock price before a stock split of 3:2 was $500. What was the price of the stock after the split? A. $757.58

B. $333.33

c. $500.00

D. $250.00

1. ABM Inc. has inventory of $2,000 on its financial statements with daily cost of goods sold of $40, accounts receivable of $5,000, and cash of $100. What is the inventory conversion period?
   1. 125 days
   2. 50 days

C. 18 days

D. 183 days