Finn Corporation has bonds on the market with 12 years to maturity, a par value of $1000, a coupon rate of 8.5% and a current price of $758.69. The bond makes semi annual payments. What is the Yield-to-Maturity on these bonds?

• 6.73%

• 6.21%

• 13.46%

• 12.42%

• 5.99%

The required rate of return of a companys common stock is the same as:

I. The companys WACC, as long as the company also has bonds outstanding

II. The cost of common stock to the company

III. The Beta of the companys stock times the market risk premium

• All of them

• II and III only

• II only

• None of them