1) Calculate the required rate of return for White Knuckle Driving School., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real risk-free rate is 4.20%, (3) the market risk premium is 8.0%, (4) the firm has a beta of .1.1 and (5) its expected rate of return is 17.0%.(Round to two decimals)

2) George's Peach Pie's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon interest payment of $70.00. The market requires an interest rate of 7.0% on these bonds. What is the bond's price? (Round to two decimals)

3) Big Dog Construction reported $10,000,000 of sales, $6,600,000 of operating costs other than depreciation, and $2,000,000 million of depreciation. It had $8,500,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Big dog's operating income, or EBIT?

4) You plan to invest in a fund that pay 7.25%, compounded annually. If you invest $125,000 today, how many years will it take for your investment to grow to $175,000? (Round up answer to the full year)

5) White Knuckle Driving School stock has a 30% chance of producing a 30% return, a 40% chance of producing a 20% return, and a 30% chance of producing a -10% return. What is the firm's expected rate of return? (Round final answer two decimals)