A company can pay for its expansion in all the following ways except: by using the earnings generated from its sale of obsolete equipment. by persuading a director's mother to make a personal loan to the company by purchasing bonds in the secondary market. by plowing back part of its profits. QUESTION 13 "You believe that Omega stock which has a beta of 1.2 will return 10.0% this coming year. The market is expected to return 8% and T-bills return 2.4%. According to CAPM, which one of these statements is correct given this information?" The stock is currently underpriced The stock plots below the security market line. The risk premium on the stock is too low given the stock's beta. The stock fits on the security market line. QUESTION 14 "If a company starts the year with receivables of $50,000 and produces sales for the year of $100,000, what is its average collection period?" O 2 days 182.5 days 097.3 days 36.5 days QUESTION 15 "If the market portfolio is expected to return 13%, then a portfolio that is expected to return 10%:" plots above the security market line plots to the right of the market on an SML graph. O is diversified. O has a beta that is less than 1.0