1.Flying Maggots levered beta is 1.5, and its D/V ratio is 0.5. The expected return on U.S. Treasury bonds is 3%, the market return is 15%, and the aftertax cost of debt is 6%. What is Flying Maggots unlevered beta?

2.Caledonians has 40,000 shares of common stock outstanding with a current price of $44 per share. The income statement shows $300,000 in revenues, $100,000 in costs of sales, and $50,000 in depreciation. Caledonians has just declared a 7-for-2 stock split. How many more shares of common stock will be outstanding after the split?

3.Robinson&Robinson is an all-equity company with 390,000 shares of stock outstanding. Robinson&Robinson has just borrowed $3,500,000 at an interest rate of 3.3% and used the entire $3,500,000 in a buyback of 86,000 shares of the outstanding stock. Ignoring taxes, what is the current value of Robinson&Robinson?

4.A project that costs $26,800 today will generate annual cash flows of $7,600 for ten years. The management decided on 3 years as the maximum target timeframe for all projects. What is the project's payback period, and will it be accepted or rejected?