13. Terroni Enterprises has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Scheuer's required rate of return?

a) 9.43 %

b) 9.67%

c) 9.92%

d) 10.17%

e) 10.42%

14. What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%?

a) 11,262.88

b) 11,826.02

c) 12,417.32

d) 13,038.19

e) 13,690.10

15. FOX stock has a beta of 1.30, and its required return is 12.00%. LAP Stock's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on LAP Beta's stock? (Hint: First find the market risk premium.)

a) 8.76%

b) 8.98%

c) 9.21%

d) 9.44%

e) 9.68%

16. Direct Markets stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)

a) 14.38%

b) 14.74%

c) 15.11%

d) 15.49%

e) 15.87%

17. Amber borrowed $12,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would the payments be?

a) 3704.02

b) 3.889

c) 4,083.69

d) 4,287.87

e) 4,502.26