A firm has a tax rate of 35%, an unlevered rate of return of 14%, total debt of $1,000, and an EBIT of $150.00. What is the unlevered value of the firm?

Select one:

a. $1,532

b. $1,346

c. $1,161

d. $696

e. $2,143

The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the:

Select one:

a. market rate of return.

b. real rate of return.

c. systematic return.

d. total return.

e. market risk premium.