1. Most purchases and sales of a firm's stock take place in the _________ market, which does not involve any money actually going to or exiting the firm.

Group of answer choices

a.primary

b.super

c.secondary

d.premium

e.liquidity

2.

A firm has book value of equity of $333 million. Its market capitalization is $600 million. It has $150 million in debt and $40 million in cash and short-term investments on the balance sheet. Its CAPM beta is 1.4, the yield to maturity on its debt is 5%, the corporate tax rate is 20%, and the required return on its equity is 11%. What is this firms WACC?

Group of answer choices

a.7.7%

b.8.5%

c.9.9%

d.11.8%

e.12.2%

3.

A real estate project has a beta with respect to the S&P 500 of 1.44. The expected return on the market is 7.0%. The relevant risk free rate is 0.80%. What is the minimum return a diversified investor would require to invest in this project?

Group of answer choices

9.7%

10.9%

12.0%