001 Fall 2017 rate and a face value of S1000. If the current price of the bond is $878.31, calcu face value A four-year bond has an 8% coupon of the bond (assuming annual interest payments). he yield to maturity 8% b.10% c.12% is defined as the financing decision of the firm. Capital structure is divided between: a. Between equity holders and debt holders. b. Real assets and financial assets c. Debtholders and creditors 21. Capital structure 22. R Technology Corporation will generate Free Cash Flows (FCF) o: year 1-S1; year 2- $2; and year 3 -$4 (the are in millions ofdollar). The FCF are expected to grow 5% per year thereafter. IfR Technology's wACC iss% the enterprise value of the company in millions of dollars. a. $32.63 b. $35.26 c. $40.00 Use the following for questions 23 through 25: E (R) 20% SML 5% 1.5B What is the Expected Return for a security with a Beta of 1.25? a. b. c. 20.00% 15.00% 17.50% there were an asset with beta of 1.5, at what expected return would you consider the asset undervalued? a. b. c. 20.00% 18.00% 22.00% ou had a stock with a Beta of 1.5 and it paid you a $3 in dividends, and you expected the price to be $81 in ld you pay for the stock today? a. $84.00 b. $100.80 c. $70.00