Omak Industries has just issued a callable (at par) five-year 8% semi-annual coupon bond. The bond can be called at par in one year. It matures at face value of $100. It has a price of $ 102. What is the bond's yield to maturity is closest to?

a. 7.5% b. 6.53% c. 4.12% d. 3.76% e. 2.94%

Suppose a project has a beta of 1.40, the risk-free rate is 2%, and the expected return of the market is 7%. What is the equity cost of capital?

a. 7% b. 9.4% c. 9% d. 10.4% e. 19.2%

Suppose Vital Networks was founded with 1m shares at $1 per share. In subsequest round of funding the company issued 700,000 shares at $2 per share. What is the pre-money valuation equal to?

a.$1 million.

b.$1.4 million.

c.$2 million.

d.$2.4 million.

e.$3.4 million.