GoozEllenJefferson (GEH) is a levered firm with assets valued at $800,000, has $200,000 of debt issued at 5.5% interest, and 10,000 shares of stock outstanding. Earnings before interest and tax (EBIT) is $25,000 and corporate profit is subject to a tax rate of 25%. Which of the following comes closest to the EPS of GEH?

		$0.75
		$1.88
		$1.00
		$1.05

Nelson bought 1000 shares of Giggle stock at its IPO price of $240. The stock is currently trading at $302 when he decides to sell 100 shares. Although the stock price has risen, Giggle has never paid a dividend. If capital gains are taxed at 20% and dividends are taxed at 25%, how much of the total proceeds from the sale will Nelson get to keep?

		$28,960
		$28,650
		$4650
		$4960

From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta of Electronic's is 0.50, which of the following comes closest to the risk free rate?

		5%
		2.5%
		0%
		1.5%
		4.25%