5/ 1 yr US treasuries have a yield to maturity of 2%. Moreover, securities that fully represent the market have a yield of 3%. Assume that Company XYZ has a beta of 1.5. What is the company's cost of equity (Re): a) 2.5% b) 3.0% c) 3.5% d) 4.0% 6/ You are the manager of company WXY and you have to allocate the yearly earnings. Assuming that your sole objective is to focus on the company's stock price. Would you: a) distribute the earnings as dividends b) Repurchase stocks c) Pay half as dividends and distribute half d) It does not matter since they will impact the shares price in the same way