1.Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%. What is the expected return of investing in Company A?

2.Your stock portfolio consists of only two stocks. You have $115,000 in Company A and $125,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio? Show your work. (Points : 5)

3.A company has a capital structure of 40% debt and 60% equity. The YTM on the companys bonds is 9%, and the companys effective tax rate is 40%. The cost of equity is 13%. What is the companys WACC? Show your work. (Points : 10)