1.Portfolio ReturnYear-to-date, Company O had earned a -6.2 percent return. During the same time period, Company V earned 8.45 percent and Company M earned 1.48 percent. If you have a portfolio made up of 30 percent Company O, 40 percent Company V, and 30 percent Company M, what is your portfolio return?

A. 5.68%

B. 1.96%

C. 3.73%

D. 16.13%

2.CAPM Required ReturnA company has a beta of.59. If the market return is expected to be 12.9 percent and the risk-free rate is 5.45 percent, what is the company's required return?

A. 15.30%

B. 7.61%

C. 9.85%

D. 13.06%

3.

Ed and Mikes has 2.9 million shares of common stock outstanding, 2.9 million shares of preferred stock outstanding, and 19.00 thousand bonds. If the common shares are selling for $13.90 per share, the preferred shares are selling for $10.90 per share, and the bonds are selling for 99.91 percent of par, what would be the weight used for equity in the computation of Tom and Jerry's WACC?

A. 79.68%

B. 33.33%

C. 44.34%

D. 49.84%

4.Fred has preferred stock selling for 93.1 percent of par that pays an 9.9 percent annual coupon. What would be Fern's component cost of preferred stock?

A. 10.90%

B. 10.63%

C. 9.90%

D. 9.22%

5. Greg ITs has 6.8 million shares of common stock outstanding, 2.8 million shares of preferred stock outstanding, and 38.00 thousand bonds. If the common shares are selling for $29.90 per share, the preferred shares are selling for $15.30 per share, and the bonds are selling for 97.82 percent of par, what would be the weight used for equity in the computation of JackIT's WACC?

A. 66.67%

B. 71.76%

C. 70.55%

D. 33.33%

6. Your Company is considering a new project that will require $700,000 of new equipment at the start of the project. The equipment will have a depreciable life of 5 years and will be depreciated to a book value of $200,000 using straight-line depreciation. The cost of capital is 11%, and the firm's tax rate is 39%. Estimate the present value of the tax benefits from depreciation.

A. $61,000

B. $144,140

C. $39,000

D. $100,000