1. The stock of Mountain Sport is expected to produce the following returns given the various states of the economy: (-9% in a recession, 17% in normal conditions and 25% in a boom) The probability of there being a recession is 20%, a normal economy is 75% and for a boom it is 5% What is the expected return on this stock? (4 Points) 12.2 percent 10.5 percent 13.6 percent 9.6 percent 2. The Bigelow Company has a cost of equity of 12 percent a pre-tax cost of debt of 7 percent and a tax rate of 35 percent. What is the firm's weighted average cost of capital if the debt- equity ratio is 507 00 (4 Points) 10.13 percent 11.11 percent 9:51 percent 10.01 percent Hel Assignments Mic