Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

Question 12 options:

1)

7.72%

2)

8.12%

3)

8.55%

4)

9.00%

5)

9.50%

At 8 percent compounded annually, how long will it take $750 to double?

Question 13 options:

1)

12 years

2)

48 months

3)

10 years

4)

9 years

A $1,000 par value 10-year bond with a 10 percent coupon rate rec%ently sold for $900. The yield to maturity is:

Question 14 options:

1)	10 percent

2)	cannot be determined

3)	less than 10 percent

4)	greater than 10 percent

Regarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________.

Question 15 options:

1)	interest and preferred stock dividends are tax-deductible; while common stock dividends are not tax-deductible

2)	common stock dividends and preferred stock dividends are tax-deductible; while interest is not tax-deductible

3)	interest and preferred stock dividends are not tax-deductible; while common stock dividends are tax-deductible

4)	common stock dividends and preferred stock dividends are not tax-deductible; while interest is tax-deductible