13. Following No.12, please calculate PI pf the project. a. 0.51 b. 0.88 c.0.90 d.0.99 e. 1.05 f.1.07 &1.11 14. Following No. 12, payback period of this project is a. 1 b.2 c.3 d.4 e. 5 f.6 g. 7 h. 8i.9j10 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 Boom25 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.9.0 i.8.2 1.11 12% 6% 4% 18% 18. Following No. 17, what is the standard deviation of the return on the portfolio? a. 1.7 b. 2.9 c. 3.9 d. 4.6 e.5.5 f.6.9 g.7.5 h. 9.0 i.8.2 j.11 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? 20. Following No. 19, what is the expected return on the asset? 5 b. 6 c. 7 d. 8 e. 9 f. 10.5 g. 11.4 h. 12 i. 14.6 j. 16 % a, 21. Suppose we have a bond issue currently outstanding that has 20 years left to maturity. 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? 22. Your company has preferred stock that has an annual dividend of $2.25. If the current price is $25, what is the cost of preferred stock? 5b. 6 c. 7 d. 8 e. 9 f. 10 g. 11 h. 12 i. 14 j. 16 % a