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Suppose an Exoxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on safe 10-year bonds is 7.0096, how much is the bond worth today? O a $502.57 b. 5508.35 G 5475.09 d. 5483.98 e $543.93 Allen Corporation can (1) build a new plant that should generate a before tax return of 10%, or (2) invest the same funds in the preferred stock of Florida Power & Light (FPL), which should provide Allen with a before-tax return of 9.00%, all in the form of dividends. (Assume that the preferred stock has a par value of $100 and annual dividends per share = $9; therefore, 89/$100 - annual 996 return.) Assume that Allen's marginal tax rate is 25%, and that 50% of dividends received are excluded from taxable income. If the plant project is divisible into small increments, and if the two investments are equally risky, what combination of these two possibilities will maximize Allen's effective return on the money invested? Hint: Use the following equation to help you answer this question, After-tax return - Pretax return (-1). (Round your final answer to two decimal places 2. All in FPL preferred stock b. 50% in each c. All in the plant project d. 6096 in the project: 40% in FPL O e. 6096 in FPL: 40% in the project. e Last year, Martyn Company had $350,000 in taxable income from its operations, $50,000 in interest income, and $60,000 in dividend income. Its corporate tax rate is 25%. What was the company's tax liability for the year? Assume a 50% dividend exclusion for taxon dividends. O a. $115,000 b. 5107,500 c. $87,500 d. $100,000 e. $102,500 Question 27 of 50 Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year. O a. $248,158.57 O b. 5517,731.90 C. $556,561.79 d. 5266,770.46 e. $598,303.93

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