7) What is the present value of the following uneven discount rate and end-of-period payments. Round to the nearest whole dolla Year Cash Flow stream ofcash flows? Assume a 6% $3,000 $4,000 $5,000 A) S10,588 B) S11.461 C) $12,688 D) S13,591 8) A decrease in the A) Growth rate B) Required rate of return C) Last paid dividend D) Both B and C will cause an increase in common stock value. The beta of ABC Co. stock is the slope of A) the security market line. 9) B) the characteristic line for a plot of returns on the S&P 500 versus returns on short-term Treasury bills. C) the arbitrage pricing line. D) the characteristic line for a plot of ABC Co. returns against the returns of the market portfolio for the same period. 10) Which of the following investors incurs the least risk? A) Bondholders B) Preferred stockholders D) All of the above bear equal risk Answer any two of the following questions for 2 points eac B2. I) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and retum? Show all your calculations Common Stock A Return Probability 0.30 0.40 0.30 Return 11% 15% 19% 0