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please answer now 28. Given the following information, calculate the market risk premium: RH=4%;Rm=15%&x=1.1 a. 4% b. 11% c. 16.1% d. 16.5% e. none of
please answer now
28. Given the following information, calculate the market risk premium: RH=4%;Rm=15%&x=1.1 a. 4% b. 11% c. 16.1% d. 16.5% e. none of the given answers 29. Given the following data for Michigan Corporation: Debt =60%; Equity =40%; Cost of equity =16%; Before-tax cost of Debt: 10%; Tax rate (Tc)=25%. Calculate the cost of capital ( WACC) for the firm: 30. Given that a preferred stock is selling for $60; and pays an annual dividend of $9; calculate the cost of preferred stock: a. 5% b. 10% c. 15% d. 20% e. none of the given answers 31. Which of the following would be a likely discount rate for an below average (low) risk project: (a) WACC (b) WACC - 2\% (c) WACC +3% (d) WACC +7% (e) none of the given answers 32. Suppose, it takes 0.85 to buy 1 USS, then the direct exchange rate is (in USA; USS/): (approximately) a. US\$1.1765/ b. US\$ 1.7265/ c. US\$1.4286/ d. US\$0.2735/ e. none of the given answers 33. If Big Mac were to cost US\$5.25 in USA and 4.25 in Germany; Then according to the Purchasing Power Parity (PPP) the spot exchange rate in terms of US $/C would be: (approximately) a. 0.8095 b. 1.25 c. 1.2353 d. 0.75 e. none of the given answers Step by Step Solution
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