1. The risk-free rate of return is 2.25 percent and the expected return on the market is 8.9 percent. What is the expected return on a stock with a beta of 1.35?

Group of answer choices

11.23 percent

10.92 percent

12.22 percent

14,27 percent

16.12 percent

2. What is the after-tax cost of debt for a company with an outstanding bond that makes semi-annual payments with 15 years to maturity, a coupon rate of 8%, a current bond price of $945, and a tax rate of 25%?

Group of answer choices

6.50%

2.44%

7.50%

4.33%

8.66%

3. Eli Lillys stock price was $75.75 and $82.50 on January 1, 2020 and December 30, 2020 respectively. If Eli Lilly paid four quarterly dividends of $0.42 over the same time period, what is the percentage return on this investment?

Group of answer choices

11.13%

2.22%

8.91%

10.25%

12.33%

4. Currently, your portfolio consists of $45,000 invested in stock A with a beta of 1.25, $33,000 in stock B with a beta of 0.72 and $92,000 invested in stock C with a beta of 1.45. What is your portfolio beta?

5. A company has a current stock price of $52.32 a share. The company just paid a dividend of $2.10 per share. The firm has established a pattern of increasing its dividends by 4 percent annually and expects to continue doing so. What is the rate of return on this stock?