23.

19.

Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.4% 72.7% - 25.7% 56.6% 6.7% 17.9% Home Depot Realized Return - 14.6% 4.4% -58.1% 71.7% 17.3% 0.9% IBM Realized Return 0.2% -3.2% - 27.0% 27.9% -5.1% - 11.3% The volatility on Lowes' returns is closest to: O A. 11% B. 14% c. 35% D. 42% Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 10% weight in equity, 20% in preferred stock, and 70% in debt. The cost of equity capital is 17%, the cost of preferred stock is 12%, and the protax cost of debt is 10%. What is the weighted average cost of capital for Ford Tits marginal tax rate is 25%? O A 9.35% OB. 8.88% OC 10.29% OD 9.82%