21. Portfolio Beta An investor places $12,000 in Stock A, $11,000 in Stock B and $18,000 in Stock C. Stock A has a beta of 1, Stock B has a beta of 1.25 and Stock C has a beta of 1.4. What is the resulting portfolio beta? 1.24 1.28 1.18 1.37

26.

Sixx AM Manufacturing has a target debtequity ratio of 0.59. Its cost of equity is 20 percent, and its cost of debt is 11 percent. If the tax rate is 31 percent, what is the company's WACC?

16.16%

12.19%

12.68%

14.63%

15.4%

The Up and Coming Corporation's common stock has a beta of 1.6. If the risk-free rate is 4.5 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)

rev: 09_20_2012

16.5%

23.7%

17.16%

17.32%

15.67%