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Question 1 Not yet answered The stock of Martin Industries has a beta of 1.43. The risk-free rate of return is 3.6 percent and the

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Question 1 Not yet answered The stock of Martin Industries has a beta of 1.43. The risk-free rate of return is 3.6 percent and the market risk premium is 9 percent. What is the expected rate of return? Points out of 1.00 P Flag question Select one: o A. 11.32% OB. 14.17% c. 18.03% D. 17.48% E. 16.47% Suestion 2 Not yet answered When computing the weighted average cost of capital, which of these are adjusted for taxes? Points out of 1.00 P Flag question Select one: A. cost of equity B. both the cost of equity and the cost of preferred stock C. cost of debt D. the costs of all forms of financing E. cost of preferred stock Question 3 Not yet answered What is the cost of equity for a firm that has a beta of 1.2 if the risk-free rate of return is 2.9 percent and the expected market return is 11.4 percent? Points out of 100 Select one: A. 14.4% P Flag question B. 13.1% C. 13.6% OD. 10.8% E. 12.8% Question 4 Not yet answered Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The firm's cost of debt is 7.6 percent and the debt-equity ratio is .45. What is the RWACC if the tax rate is 34 percent? Points out of 100 P Flag question Select one: A. 11.65% B. 12.60% o C. 10.59% D. 14.07% E. 10.94%

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