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1.You own a portfolio that has a total value of $290,000 and it is invested in Stock D with a beta of .71 and Stock

1.You own a portfolio that has a total value of $290,000 and it is invested in Stock D with a beta of .71 and Stock E with a beta of 1.54. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D?

2.Take It All Away has a cost of equity of 11.05 percent, a pretax cost of debt of 5.40 percent, and a tax rate of 35 percent. The company's capital structure consists of 69 percent debt on a book value basis, but debt is 35 percent of the company's value on a market value basis. What is the company's WACC?

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