C. corporation D. all of the above E. both A. and B. 9. Zee Corp.just paid an annual dividend of $0.25, which is expected to grow at an annual rate of 4.0% for the foreseeable future. If the discount rate to use for Zee Corp. cash flows is 7.3%, what is the intrinsic per- share value of Zee Corp. common stock? A. $7.58 B. $7.88 C. $30.30 D. $31.52 E none of the above 10. Which of these is the most expensive source of capital? A. debt B. internally generated equity C. new-issue common stock D. preferred stock 11. Which statement is false? A. The effective yield is greater than or equal to the annual interest rate (APR). B. The price of a share of preferred stock is calculated using the formula for the present value of a perpetuity. C. A corporation is always domestic in the state of its principal business office. 12. The graph that plots the beta of securities (on the x-axis) against their expected returns (on the y-axis) is called which of the following? A. the securities market line B. the frontier of efficient investments C. the capital market line D. the capital asset pricing line 13. The beta of a security is a measure of its systematic risk. A True B. False 14. A firm undertakes a six-year project that requires an initial capital investment of $250,000. The project is then expected to provide cash flow of $30,000 in the first year, $60,000 in the second year. $80,000 in the third and fourth years, $60,000 in the fifth year, and $10,000 in the terminal year. The project has an end-of- life salvage value of $5,000. If the discount rate applied to these cash flows is 8.20 percent, what is the net present value of this project? A. +$308 B. +$72 C. +$ 74,096 D. none of the above