1. What are the portfolio weights for a portfolio that has 150 shares of Stock A that sell for $80 per share and 120 shares of Stock B that sell for $60 per share? You own a portfolio that has $2,500 invested in Stock A and $3,600 invested in Stock B. If the expected returns on these stocks are 8 percent and 12 percent, respectively, what is the expected return on the portfolio? You own a stock portfolio invested 25 percent in Stock X, 20 percent in Stock Y, 45 percent in Stock W, and 10 percent in Stock Z. The betas for these four stocks are .80, .20, 1.30, and 1.70, respectively. What is the portfolio beta? JKL stock has a beta of 1.4, the expected return on the market is 12.0 percent, and the risk-free rate is 6.5 percent. What must the expected return on this stock be? The MNO Corporation just paid a dividend of $2.00 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $40 a share, what is the companys cost of equity? BCD Corporations common stock has a beta of 1.40. If the risk-free is 4.5 percent and the expected return on the market is 10 percent, what is the companys cost of equity capital? STU Corporation has an issue of preferred stock with a $7.50 stated dividend that just sold for $75.00 per share. What is the STUs cost of preferred stock? PQR Corporation issued a 30-year, 7.5 percent bond 13 years ago. This bond pays annual interest and currently sells for 90 percent of its face value. The companys tax rate is 25 percent. a. What is the pretax cost of debt? b. What is the after-tax cost of debt? MBE Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 10 percent, and the cost of debt is 9.0 percent. The relevant tax rate is 30 percent. What is MBEs WACC?