Question 1\ The book value of equity of a firm is

$200

million and the market value of equity is

$280

million. The book value of debt of the firm is

$60

million and the market value of debt\ is

$70

million. What is the market value of assets of the firm?\

$350

million\

$260

million\

$220

million\

$340

million\ Question 2\ Company ABC's stock has a beta of 1.45 . If the risk-free rate is

2.60%

, and the expected market return is

10.00%

, what is the expected return of ABC's stock, according to the\ CAPM?\

15.65%

\

13.33%

\

11.60%

\

19.42%

\ Question 3\ Company XYZ expects to pay a dividend of

$2.25

next year and expects these dividends to grow at

4.00%

a year thereafter. The price of

xYZ

today

$26.95

per share. What is\ XYZ's cost of equity capital?\

8.50%

\

8.35%

\

12.50%

\

12.35%

The book value of equity of a firm is $200 million and the market value of equity is $280 million. The book value of debt of the firm is $60 million and the market value of debt is $70 million. What is the market value of assets of the firm? $350 million $260 million $220 million $340 million Question 2 1 pts Company ABC's stock has a beta of 1.45 . If the risk-free rate is 2.60%, and the expected market return is 10.00%, what is the expected return of ABC's stock, according to the CAPM? 15.65% 13.33% 11.60% 19.42% Question 3 1 pts Company XYZ expects to pay a dividend of $2.25 next year and expects these dividends to grow at 4.00% a year thereafter. The price of XYZ today $26.95 per share. What is XYZ 's cost of equity capital? 8.50% 8.35% 12.50% 12.35%