Choose the correct answer:

11.What is the required rate of return using the Capital Asset Pricing Model and the following information:

Beta = .85

Expected return on the market = 9%

Risk Free Rate = 1.50%

A.7.50%

B.7.88%

C.9%

D.7.65%

12.What is Free Cash Flow given the following information:

EBIT = $35,000,000

Interest Expense = $1,000,000

Depreciation Expense = $7,500,000

Capital Expenditures= $10,000,000

Taxes = $10,000,000

A.$32,500,000

B.$21,500,000

C.$22,500,000

D.0