12. From the previous question, suppose the loan has a 6-year balloon payment, meaning that the loan must be paid off in a single payment after six years, the balloon payment be closest to: a) $44,265.69 b) $15,557 c) $146,282.41 $22,660 13. d) Which one of the following projects - A, B, C, or D -- should be accepted? The expected return on the market is 16% and the risk-free rate is 6 percent. a) b) c) d) Project A, which has a beta of 0.50 and has an expected return of 11.2% Project B, which has a beta of 2.50 and has an expected return of 25.4% Project C, which has a beta of 1.25 and has an expected return of 18.2% Project D, which has a beta of 1.00 and has an expected return of 15.8% 26. What is the current yield of a bond with a 7 percent coupon rate paid semi-annually, if the bond is priced to yield 9 percent YTM, and it has 9 years to maturity? a) 6.42% b) 7.97% c) 3.98% d) 9.0% 27. 28. Which statement below is a NOT potential disadvantage of the Payback method? a) It is biased towards liquidity b) c) It ignores cash flows beyond the cut-off date It ignores the time value of money d) It is biased against long-term projects Morrison Corporation currently earns $5.00 per share, and has a payout of 50 percent. Dividends are expected to grow at a constant rate of 9 percent per year. The required rate of return is 17 percent. What maximum price should you be willing to pay for Morrison's stock? a) $14.71 b) $31.25 c) $10.67 d) $34.06