Please answer all

(Risk & Return) What is the require rate of return on a stock with beta of 1.3 and standard deviation of returns of 15% if the risk-free rate is 1.2% and the return on the market is 7%?

• A. 8.14%
• B. 10.30%
• C. 9.20%
• D. 11.54%
• E. 8.74%

(TVM) If Ms. P wants to withdraw $900 from an account earning 4% average annual interest rate at the start of each year for 7 years, how much must she have in the account today? Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator, or TVM keys.

• A. $5,401.85
• B. $7,392.80
• C. $5,617.92
• D. $6,059.47
• E. $5,194.09

(Capl Budgeting) If the managers of HHH Enterprises were to commit to an investment project under consideration, they would obtain 40% of the money to buy the needed assets from lenders (wd) and 60% from owners (we). Lenders would be expected to charge an 8% annual interest rate (kd), and owners would expect a 12% annual rate of return on equity (ke). If the project were undertaken, the companys marginal yearly income tax rate t would be 30%. What would we compute the annual weighted average cost of capital (WACC) for the project to be?

• A. 8.24%
• B. 11.60%
• C. 7.28%
• D. 9.44%
• E. 10.40%

(Bond Value) MMM Company borrows money through a bond issue with a $1,000 par value and a 9% annual coupon interest rate, semiannual payments, and maturity of five years. What price should someone who requires an 8% annual rate of return (yield to maturity) be willing to pay for one of these bonds? (The semi-annual payment schedule is important to the computation.) Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator.

• A. $1,040.55
• B. $990.83
• C. $1,009.26
• D. $1,125.56
• E. $1,254.64

(Capl Budgeting) You choose among three mutually exclusive investment projects, all of which have a positive NPV. Assuming the projects are of identical risk, you should choose the one with

• A. the highest IRR (internal rate of return)
• B. the shortest payback period
• C. the longest payback period
• D. the highest NPV

(Bond Value and Yields). What is the annual yield to maturity of a bond with a 4.5% annual coupon rate, semiannual payments, $1,000 par value, current price of $988, and 6 years to maturity. (Simply double the semiannual yield to get the annual yield.)

• A. 2.37%
• B. 4.73%
• C. 4.80%
• D. 4.32%
• E. 9.47%