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Question 1 1 pts Last year Rocco Corporation's sales were $600 million. If sales grow at 6% per year, how large (in millions) will they

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Question 1 1 pts Last year Rocco Corporation's sales were $600 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later? $802.94 $722.64 $810.96 $642.35 $979.58 Question 2 1 pts Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC=10.00% Year 0 1 2 3 4 Cash flows -$1,300 $525 $485 $445 $405 2.62 years 2.75 years 3.32 years 3.05 years 3.42 years Question 3 1 pts Kelly Inc's 5-year bonds yield 7.50% and 5-year T-bonds yield 4.70%. The real risk-free rate is r = 2.5%, the default risk premium for Kelly's bonds is DRP -0.40%, the liquidity premium on Kelly's bonds is LP - 2.4% versus zero on T-bonds, and the inflation premium (IP) is 1.5%. What is the maturity risk premium (MRP) on all 5-year bonds? 0.73% 0.70% 0.55% 0.74% 0.57%

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