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Company XYZ has determined that its weighted average cost of capital is 12.5%. The capital structure of the company is made up of 75% equity and 25% debt. The before-tax cost of debt is 10%. Given a tax rate of 34%, what is XYZ's cost of common stock?

A. 13.25%

B. 14.47%

C. 15.25%

D. 16.53%

When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

A. Common stock

B. Long-term debt

C. Preferred stock

D. Short-term debt

The renegotiation of trade payment terms in an e-commerce environment should include which of the following?

A. Application of the payment to the accounts receivable system

B. NACHA format chosen for the payments

C. A bank that will process the payment

D. Evaluation of payment clearing history

Representations and warranties in a loan agreement refer to which of the following?

A. The financial condition of the borrower during the term of the loan

B. Violations of loan covenants and material adverse changes

C. Conditions at the time the agreement is executed

D. Limitations that restrict the borrower's activities to protect the lender

A digital signature cannot be forged if:

A. the private key is never shared with anyone.

B. maintained by a certificate authority.

C. it has undergone authentication.

D. it is RSA-encrypted.