1.HeyYou Inc has a beta is 3.30, with government t-bills yield 1.25%. Analysts are forecasting a market risk premium of 8%. What would be the company's cost of equity?

2.Rekok Corp his planning to increase their dividends 8% per year over the next three years. The dividend growth will then only increase by 1% after that. Last week the company paid a $5 dividend per share. If the required rate is 8.35% what is the value of the stock price?

3.Rav is looking for a mortgage. He goes to the bank and they tell him that the rate is 6% with monthly payments. Since he took Managerial Finance he knows that this is the APR. What would be Rav's EAR?

4.Vella Inc. sells 2000 units of soda makers at a price of $185 each. The costs to produce these soda markers is $140 per unit. CCA for the year was $17,200 with a 40% tax rate. What is the company's operating cashflow?

5.You are looking to invest in Apple and Facebook stock. You purchase 100 shares of Apple at $130 per share and you buy 50 shares of Facebook stock at $270. What is your portfolio weight for Apple Stock in your portfolio?