33. The Silvan Elves of Mirkwood are great archers. They are preparing for war and need to build a huge supply of arrows for the upcoming battle. They realize this cost a lot of money and have decided to start saving TODAY (annuity due) Assume they can save $50,000 each month In an account that will earn .6% per month, how much money will they have to fight Sauron's forces five years from now? (round to the nearest S) a $3,000,000 b. $719.647 c. $3,598,237 d $254,536 e $3,619,826 Answer. Use the following information to answer questions 34-35 Facebook just issued $100 million of 20 year zero coupon bonds. These bonds are currently priced at $225. In addition, Facebook has $30 million of Preferred Stock with a current market price of $125 per share and an annual dividend of S10 per share. Facebook has $670 million worth of common stock that is expected to start paying dividends of $3 per share and it is expected that the dividends will grow at 4% per year from then on. Facebook has a current price of S90 per share. Assume the market rate of return is l 1%, and the risk free rate of return is 3%. Facebook has a beta of 1.5. 34. What is the Yield to Maturity for the Facebook zero-coupon bonds? a 12% b.11% c. 15.0% d.7.6% e, 3.8% Answer 35. What is the expected rate of return for the Facebook common stock using CAPM? a.12% b. 11% c. 15.0% 7.6% 3.8% d. e