Help PLEASE!!!!

Question 1

Holland Hospital has a portfolio of the investments below. What is the beta of the entire portfolio?

Stock	Investment Amount	Beta
Amazon	$150,000	1.64
Disney	$60,000	1.44
XYZ Funds	$90,000	-.68
Total	$300,000

Select one:

a. 0.90

b. 2.40

c. 1.64

d. 1.31

Question 2

Bailey's Ambulance paid out their previous dividends in the amount of $3.00 each. They expect this payout to grow at a steady rate of 6% each year. Required rate of return is 11%. What is the current value of Bailey's Ambulance stock?

Select one:

a. $64.80

b. $29.39

c. $60.00

d. $33.00

Question 3

A dermatology clinic has a capital structure of 60% debt and 40% equity. The before-tax cost of debt is 12%, and the clinic falls in the 30% tax bracket. The cost of equity is estimated at 11%. What is the corporate cost of capital (rounded to the nearest tenth of a percent)?

Select one:

a. 9.4%

b. 11.6%

c. 11.0%

d. 10.3%

Question 4

Estimated Returns for Two Projects

Probability of Occurrence	Rate of Return of Project 1	Rate of Return of Project 2
0.40	15%	0%
0.20	30%	60%
0.40	40%	70%

What is the expected return of Project 1?

Select one:

a. 28.3%

b. 30%

c. 3.0%

d. 28.0%

Question 5

Assume that Wanda pays income taxes at a 32% rate. She owns a municipal bond that pays 7% interest. What interest rate would have to be set on a corporate bond to produce the same amount of after-tax income?

Select one:

a. 10.3%

b. 7%

c. 2.2%

d. 8.5%

Question 6

Which of the following statements about capitation is most correct?

Select one:

a. Capitation creates a delay between providing services and receiving payment.

b. The capitation payment amount to providers varies significantly from month to month and hence is difficult to predict.

c. Capitation encourages providers to focus on prevention and wellness.

d. Capitation places a greater administrative burden on providers than does fee-for-service payment.

e. Capitation uses a per diagnosis methodology to set hospital payment rates.

Question 7

Which of the following statements about the riskiness of a two-investment portfolio is most correct?

Select one:

a. If the returns are perfectly positively correlated, all risk can be eliminated.

b. If the returns are perfectly negatively correlated, no risk can be eliminated.

c. If the returns have a correlation coefficient of +0.7, some but not all risk can be eliminated.

d. If the returns have a correlation coefficient of -0.4, all risk can be eliminated.

e. If the returns are uncorrelated (correlation coefficient of 0.0), all risk can be eliminated.

Question 8

What is the expected rate of return on National Healthcares stock if the next expected dividend (D₁) is $3, the stock is currently selling for $30, and it has an expected constant growth rate of 6 percent?

Select one:

a. 15%

b. 16%

c. 17%

d. 18%

e. 19%