You are conducting a study testing whether a childs age is a good predictor of his or her height. You have collected the following data from a random sample of seven children:

Age (months)	Height (cm)
34	77
50	95
63	130
59	120
53	109
44	102
40	94

Perform a regression of height (dependent variable) on age (independent variable).

What is the Y-intercept of the regression line?

58.37

52.81

68.60

39.07

24.73

What is the slope (beta) of the regression line?

0.63

1.52

1.61

0.69

1.31

The regression model predicts that a 5-year-old child (60 months) would be approximately tall.

To calculate the after-tax cost of debt, multiply the before-tax cost of debt by(1 T) .

Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 10.20% for a period of eight years. Its marginal federal-plus-state tax rate is 25%. PRCs after-tax cost of debt is 10.20% (rounded to two decimal places).

At the present time, Perpetualcold Refrigeration Company (PRC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)

6.11%

9.17%

8.79%

7.64%