6. A bond carries an 10 percent coupon, paid semi-annually. The par value is $2,000, and the bond matures in nine years. If the bond currently sells for $1800, what is its yield to maturity? YTM=....... 7. Compute the operational cash-flow for a corporation with a return on equity of 20% and a debt-to-equity ratio of 40% knowing that the interest rate on debt is 5%, depreciation expense is 10000 lei and the taxes paid equal 22000 lei: COD= 8. Consider a corporation with debts of 100000 lei and a cost of equity of 13%. The corporation registered interest expenses of 6000 lei. The weighted average cost of capital under taxation (16% corporate tax rate) for this corporation with a debt-to-equity ratio of 60% equals: a) 10.015% (b) 7.015% (C) 8.015% (d) 9.015% (C)...... 9. A company has the following capital structure: Security Expected return Debt 6 Preferred stocks 8 Common stocks 15 A. What is the expected return on equity (cost of equity): Market value 800 200 1200 a 14% (b) 10.5% LC) 12.6% (d) 6% (e......... B. What discount rate should the company use for evaluating investment projects with similar risk (Tc=16%)? a) 9.74% (b) 10.74% C 11.74% (d) 12.74% (e)........... 10. The past returns on a stock and a market index are presented in the table below: Month 1 2 3 Stock (%) 3 2 6 Market Index (%) 2 3 4 The risk-free rate of return is 1%. The cost of equity equals