18. Dr. Dave wants to determine the expected return (re) of a stock portfolo. Assuming the portfolio beta (B) is 0.5, the risk-free rate (n) is 6 %, the market return (Fm) is 12 % , and the beta statistical return (rbs) is 5%, compute the expected rate of return. (6 points) 19. Big Brother Holding Co. has a project under consideration with the following estimated cash flows. The firm's cost of capital is 12%. Calculate the NPV for the project (7 points) Year 0 ($50,000) 4 $10,000 $40,000 $20,000 $30,000 20. Yodadio, Inc. has a Beta of 1.20, the risk free rate is 4% and the "risk premium" (market rate of return minus the risk free rate) is 6 % , If Yodadio, Inc, borrows money, the interest rate will be 7% and the effective tax rate is 40%, The weight of the debt is 60 % of total capital and the weight of equity is 40 % of total capital. What is the weighted average cost of capital (WACC) for the firm? (7 points) Weight Cost Weighted Cost Debt Equity WACC aww.e