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A share of stock with a beta of 1.16 now sells for $110. Investors expect the stock to pay a year end dividend of 54.

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A share of stock with a beta of 1.16 now sells for $110. Investors expect the stock to pay a year end dividend of 54. The T-bill rate is 4%, and the market risk premium is 79. Suppose investors believe the stock will sell for 5121 at year end. Is the stock a good buy? Yes Na QUESTION 17 A firm is 50% financed by debt with a yield-to-matunty or 8. The equity has a beta of 16 the market risk premium is 8.5% and the risk tree rate is 3.5%. What is the firm's WACC if the tax rate is 3497 O A 13.12% OB, 14.21% OC. 10.52% D. 12.04

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