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2 -answer/Caleulation Questions [60 marks Question 1 [15 marks Part 1.A [7 marks vested in stocks A and B plus a risk-free asset. $4,000 You

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-answer/Caleulation Questions [60 marks Question 1 [15 marks Part 1.A [7 marks vested in stocks A and B plus a risk-free asset. $4,000 You have an $18,000 portfolio which is in is invested in stock A how much (in dollar terms) needs to be inlansstock A has a beta of 1.70 and stock B has a beta of 1.25. Approximately invested in stock B if you want your portfolio's beta to equal that of the overall stock market? Part 1.B I8 marks] GT Industries has 6 million shares of common stock outstanding with a market price share. The company also has outstanding preferred stock with a market value of Si0 20,000 corporate bonds outstanding each with face value $1,000 and selling at 95% of face value on the bond market. The cost of equity is 12%, the cost of preferred is 8%, and the pre-tax cost ot $15 per and of debt is 7%. GT's marginal corporate tax rate is 30%, what are the respective market value weights for GT's common stock, WACC preferred stock, and corporate bonds? What is the firm's

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