help pls

Questions 21-27 are based on the following information. CAPM and stock valuation. Your aunt, Beth, plans to invest in the common stock of Smart-investment Corporation Knowing that you are studying finance, she asks for your suggestion. You calculation shows that yield on Treasury securities is 6%. You know that the S&P 500 Index's expected annual return is 14% Your coonometric model tells you that beta of this company's stock is 1.25. Aunt Beth tells you that this company just paid an annual dividend of S2. After collecting as much information about this form as possible, you expect the firm's dividend will grow at an annual rate of 7% forever. The stock is sold for $25 per share for the time being 21. The firm's dividend of next year is expected to be a $1.75 b. 52.00 c. 52.14 d. 52.44 22. The market risk free rate is b. 7% c. 14% 23. The expected return of the market portfolio is a 6% b7% C 14 24. The beta, which is 1.25, in the problem is a total risk of the stock, and this stock is an aggressive stock b. total risk of the stock, and this stock is a defensive stock. c. Systematic risk of the stock, and this stock is an aggressive stock d. systematic risk of the stock, and this stock is a defensive stock. 25. The required rate of return of this stock is c. 16% d. 23.5% 26. The valuation of the stock is a S12.5 b SII 375 $22.22 d $21.78 27. Your suggestion to Aunt Beth is a. buy this stock because it is underpriced. b. do not buy this stock because it is overpriced c. neither a norb. Questions 28-34 are based on the following information Personal finance. Suppose you are an engineer and your spouse is a sales person. Neither of you knows finance, economics or financial statement analysis. Both you and your spouse are salary carners. Both are paid each month 28. After allocating sufficient money to your monthly living expense, mortgage education, other necessary expenses and emergency fund, you would like to use the remaining salary to do which of the following first Invest in your tax-friendly retirement account b. Invest in your taxable investment account c. Pay down your high-interest consumer det Make extra payment to your mortgage 29. Which of the following investment Strategies is appropriate for you? a Invest your money in actively managed mutual funds b. Invest your money in low-cost index funds like Vanguard Invest all your money in your company's stock d Invest all your money in local company's stocks 30. Which of the following investment strategies is appropriate for you? a. Save a certain amount of money each month and use the monthly savings to buy stocks or mutual fund shares cach month no matter how the market performs at the time b. Save a certain amount of money each month in a bank. At the end of each year, use the savings to buy stocks or mutual fund shares no matter how the market performs at the time C. Save a certain amount of money cach month in a bank Use your savings to buy stocks or mutual fund shares only when you think the market is bullish, and sell stocks or fund shares when you think the market is bearish d. Save a certain amount of money each month in a bank. Use your savings to buy stocks or mutual fund shares only when you think the market is bearish, and sell stocks or fund shares when you think the market is bullish 31. If you suddenly inherit a large amount of money, which of the following investment strategy is appropriate for you? a Stay focused. Immediately use all your money to buy a few stocks you like. b. Gradually invest your money in a few stocks you like. c. Immediately invest all your money in well-diversified mutual funds, such as index funds. d. Gradually invest your money in well-diversified mutual funds, such as index funds. 32. Which of the following investment strategies is appropriate for you! Only invest in US stocks or US mutual funds Only invest in foreign stocks or foreign mutual funds Invest in both US and foreign stocks or mutual funds. d None of the above 33. If your investment horizon in long, which of the following is LEAST appropriate for a Corporate bonds b Savings accounts Common stacks d Mutual funds 34. You are interested in not only US stocks but also foreign stocks. You are considering whether to invest in American Depositary Receipts (ADRs, they represent ownership in the shares of a foreign company trading on the US financial markets.) of a Japanese company and a South American company. Other than market risk and firm risk, currency risk is also a concern. You know that both firms' major profits come from their domestic operations. You believe in the future the US dollar will depreciate against Japanese yen and appreciate against Argentine peso. Which of the following is true? a. The exchange rate change will decrease the dollar price of the Japanese y's ADR and increase the dollar price of the Argentine company's ADR. b. The exchange rate change will decrease the dollar price of both companies ADRs. c. The exchange rate change will increase the dollar price of the Japanese company's ADR and decrease the dollar price of the Argentine company's ADR. d. The exchange rate change will increase the dollar price of both companies' ADRs. Questions 28-34 end. Questions 35-40 are based on the following information. Corporate finance. You are the CFO of the Stocks-and-bonds company. Both your company's stock and bonds are traded in the NYSE. 35. If you think your company's stock is currently undervalued by the market, you would like to a. issue more shares. b. repurchase some shares. c. issue more bonds. d. call back your company's old bonds and issue new bonds. 36. Another company also thinks your company's stock is currently undervalued by the market. So, it wants to buy a large number of your company's shares to control your firm. If you want to defend the takeover, you would a. issue more shares. b. repurchase some shares. c. lay off your company's employees. d. call back your company's old bonds and issue new bonds. 37. If you think your company's stock is now substantially overvalued by the market, you would like to a. issue more shares. b. repurchase some shares. c. issue more bonds. d. call back your company's old bonds and issue new bonds. 38. If you think your company's stock is now substantially overvalued by the market and you want to acquire another company, which you think is undervalued by the market, you would to control the target company. a. pay cash to retire the target company's debt b. buy the target company's bonds c. pay cash to buy the target company's shares d. exchange your company's shares for the target company's shares 39. Your company wants to acquire another company. After you announce the merger intention to the public, the target company's stock price would a. decrease. b. increase. c. unchanged. d. none of the above. 40. You believe the market interest rate has already dropped to the bottom. You would a. issue more shares. b. repurchase some shares. c. call back your company's old bonds and issue new bonds. d. increase your company's cash dividends. Questions 35-40 end