1. A firm is 65% equity and 35% debt. The firm's marginal tax rate is 40%. Their bonds trade for $990, mature in nine years, have a par value of $1,000, a coupon rate of 8.00% and pay semi-annually. The firm's common stock trades for $27 and just paid a dividend of $5.00. Dividends are expected to grow at 3% forever. The firm's WACC is ___%.

2. An investment will pay $58,000 per year forever beginning 8 years from today. If the relevant rate is 10% compounded monthly, the investment is worth $______ today.

3. You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. You will begin to make withdrawals from the account the first month after you retire. If you plan to live an addition 25 years and leave $800,000 to your heirs, you will be able to withdraw $_____. (Note: you make 300 total monthly withdrawals from your retirement account.)

4. MMK's common stock has a beta of 0.60. The expected return on the market is 12% and the risk-free rate, r_f, is 3%. MMK expects to pay a dividend of $3.00 next year, and the dividend is expected to grow at 4% per year forever. The price of MMK common stock should be $________.