5.

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns:

Economic State	Probability	Return
Fast Growth	.1	29%
Slow Growth	.8	14%
Recession	.1	-29%

14.3%

14.0%

11.2%

17.0%

6.

Solar Shades has 6.9 million shares of common stock outstanding, 5.9 million shares of preferred stock outstanding, and 29 thousand bonds. If the common shares are selling for $30.00 per share, the preferred share are selling for $31.90 per share, and the bonds are selling for 104.81 percent of par, what would be the weight used for equity in the computation of Solar Shade's WACC?

53.78%

48.64%

33.33%

66.67%

7.

Investment Return MedTech Corp stock was $51.55 per share at the end of last year. Since then, it paid a $1.05 per share dividend. The stock price is currently $63.10. If you owned 300 shares of MedTech, what was your percent return?

19.97%

24.44%

20.37%

16.64%