Answer all questions please

Lorraine Jackson won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.) a. $750,000 b. $334, 600 c. $212, 400 d. $235, 700 e. $108, 744 Assume that interest rates on 20-year Treasury and corporate bonds with same maturities and different ratings, all of which are noncallable, are as follows: The differences in rates among these issues were most probably caused primarily by: a. Real risk-free rate differences. b. Inflation differences. c. Default risk and liquidity differences. d. Maturity risk differences. e. All above. For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure. a. r_e > r_s > WACC > r_d. b. r_s, > r_e, > r_d > WACC. c. WACC > r_e > r_s, > r_d. d. r_d r_s > WACC. e. WACC > r_d > r_s > r_e. Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 2.50%. and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the number of years to maturity. What rate of return would you expect on a 4-year Treasury' security? If averaging is required, use the arithmetic average. a. 5.40% b. 7.10% c. 6.95% d. 6.8% e. 7.67%