3. The beta of stock Golden is 1.25. The risk free rate of interest is 2.5% and the expected return on the market is 10%. According to the capital asset pricing model, which of the following comes closest to the expected return of Golden?

A. 12.37%

B. 13.12%

C. 14.25%

D. 11.88%

4. Western Electric has 23,000 shares of common stock outstanding at a price per share of $57 and a rate of return of 14.2 percent. The firm has 6,000 shares of 7 percent preferred stock outstanding at a price of $48 a share. The preferred stock has a par value of $100. The company also has 350 corporate bonds, each with $1000 par value, and the bond currently sells for 102 percent of face. The yield-to-maturity on the debt is 8.49 percent.

What is the capital structure weight of the firm's common stock?

	A.	75.36%
	B.	55.25%
	C.	48.16%
	D.	67.02%

PLEASE ANSWER ALL QUESTIONS