18) Consider the following yields to maturity on various one-year zero-coupon securities: Yield Security Treasury 4.6 AA corporate 4.8 BBB corporate B Corporate 5.6 6.2 Wyatt Oil just reported that a major fire destroyed one of its oil production facilities in Colorado. While the facility was fully insured, the loss of oil production will decrease Wyatt's free cash flow by S120 million at the end of this year and by $80 million at the end of next year. Wyatt has 50 million shares outstanding and has a weighted average cost of capital of 9%. Assuming the value of Wyatt's debt is not affected by this event, the expected decrease in Wyatt's stock price is closest to: A) $3.87 B) $2.00 C) $4.00 D) $3.55 Use the table for the questions) 19) and 20). Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price (S) $25 Stock Price in One Year (S) S35 $25 $20 Probability Return R 40% 090 -20% PR 25% 50% 25% 19) The expected return for Alpha Corporation is closest to: A) 1090 20) The variance of the return on Alpha Corporation is closest to: ) 4.75% B) 6.67% C) 0.00% D) 5.00% B) 5.00% C) 3.625% D) 3.75%