12. An investment project has the following cash flows: CFO -1,200,000, C01-CoS 300,000 each If the required rate of return is 12%, calculate IRRI ). a. 5 b. 6 c. 7.9 d. 8.7 e. 9.5 f. 10.5&11.8 h. 12 i, 14.6j. 16 % 13. Following No.12, please calculate Pl pf the project. a. 0.51 b. 0.88 c.0.90 d. 0.99 e. 1.05 f. 1.07 g.1.11 14. Following No. 12, payback period of this project is a. 1 b.2 c. 3 d.4 e.5 f.6 g7 h.8 i.9 j10 years 15. Following No. 12, should the project be a. accepted b. rejected c. it cannot be decided. 16. You bought a stock for $34, and you received dividends of $0.14. The stock is now selling for $41. What is your percentage return? a. 7% b, 8% c. 11% d. 15% e. 19% f. 21% g 28% f. 30% g. 31% 17. Consider the following information on returns and probabilities: Invest 1/2 of your money in Asset A and 1/2 in Asset B State Probability A B Boom 25 Bust .75 What is the expected return for the portfolio? a. 1.7 b. 2.9 c. 3.9 d. 4.6 e. 5.5 f 6.9 g, 7.5 h.90 ?82j.11 12% 6% 4% 18% portfolio? 18. Following No. 17, what is the standard deviation of the return on the a. 1.7 b. 2.9 c. 3.9 d.4.6 e.ss f.69 &7s h.9.0 182 j11 19. Consider an asset with a beta of 1.2, a risk-free rate of 5%, and a market return of 13% What is the reward to risk ratio? a. 5 b. 6 c. 7 d. 8 e. 9 f. 10g. 11 h. 12 i. 14 j. 16 % 20. Following No. 19, what is the expected return on the asset? a. 5 b. 6 c. 7 d. 8 e, 9 f. 10.5 g. 11.4 h.12 i. 14.6 j.16 % The coupon rate is 8%, and coupons are paid semiannually. The bond is currently selling for $828 per $1,000 bond. What is the cost of debt? a. 5b.6 ?. 7 d, 8e. 9 f. 10 g. 11 h.12 i.14j.16 % 21. Suppose we have a bond issue currently outstanding that has 20 years left to maturity