1.)

Suppose that in the coming year, you expect Exxon-Mobil stock to have a volatility of 42% and a beta of 0.9, and Merck's stock to have a volatility of 24% and a beta of 1.1. The risk free interest rate is 4% and the market's expected return is 12%. Then, the cost of capital for a project with the same beta as Exxon Mobil's stock is closest to: O A.11.6A: Ibl O l3n11.2A: Il O (-12.85 Il 7.6% Il Which of the following statements is false? There are two potential sources of cash flows from owning a stock An investor will be willing to pay a price today for a share of stock up to the point that Cathis transaction has a zero NPV. An investor might generate cash by choosing to sell the shares at some future date. Because the cash ows from stock are known with certainty, we can discount them (3 D_using the risk-free interest rate