11.Average ReturnThe past five monthly returns for PG Company are 1.90 percent, -2.8 percent, 4.90 percent, 4.4 percent, and 2.6 percent. What is the average monthly return?

16.63%

2.21%

3.33%

11.03%

12.Expected ReturnIf a company's current stock price is $25.00 and it is likely to pay a $.75 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?

.84%

15.00%

3.00%

12.00%

13.IVY has preferred stock selling for 96.5 percent of par that pays a 8.5 percent annual coupon. What would be IVY's component cost of preferred stock?

8.20%

8.81%

8.50%

29.75%

14.Investment ReturnHillCom Corp stock was $75.95 per share at the end of last year. Since then, it paid a $3.45 per share dividend last year. The stock price is currently $78.95. If you owned 500 shares of HillCom, what was your percent return?

4.54%

8.49%

8.17%

4.37%

15.Required ReturnIf the risk-free rate is 10.0 percent and the market risk premium is 4.0 percent, what is the required return for the market?

6.0%

14.0%

10.0%

4.0%

16.Portfolio WeightsAn investor owns $13,000 of Adobe Systems stock, $17,000 of Dow Chemical, and $27,000 of Office Depot. What are the portfolio weights of each stock?

Adobe System = 0.23, Dow Chemical = 0.30, Office Depot = 0.47

Adobe System = 0.33, Dow Chemical = 0.33, Office Depot = 0.33

Adobe System = 0.30, Dow Chemical = 0.23, Office Depot = 0.47

Adobe System = 0.27, Dow Chemical = 0.33, Office Depot = 0.40

17.Sports Corp has 11.3 million shares of common stock outstanding, 6.3 million shares of preferred stock outstanding, and 2.3 million bonds. If the common shares are selling for $26.3 per share, the preferred shares are selling for $13.8 per share, and the bonds are selling for 96.87 percent of par, what would be the weight used for equity in the computation of Sports's WACC?

56.78%

11.38%

33.33%

12.84%

18.Portfolio BetaYou own $1,700 of City Steel stock that has a beta of 1.64. You also own $6,400 of Rent-N-Co (beta = 1.94) and $5,400 of Lincoln Corporation (beta = 1.04). What is the beta of your portfolio (closest to)?

4.62

1.54

3.31

1.00