Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2?

A project costs $66,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%. What is the project's payback in years?

A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon, and sells for $980. What is its Yield to Maturity?

Knox Industries has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $2.75 at the end of each year. What is the required rate of return?

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of $97.00?