QUESTION 21 5 Consider a portfolio of stocks X, Y, Z whose returns in various economic conditions are set forth below. State Probability X Y Z Boom 25 22% 10% 4% Normal .60 15% 9% 5% Recession 15 5% 896 7% What is the expected return in asset Y? % to two decimals) for a portfolio with an investment of $3000 in asset X and $7000 QUESTION 22 To help finance a now plant, Roxxon, Inc. just sold a noncullablo 40 year bond. This $1,000 par bond sells for $1,155 and has a 8.25% annual coupon, paid semiannually. Assume there are no flotation costs, and the firm's tax rate is 30%, what is the component after-tax cost of debt for use in the WACC calculation? 5.50% 5.08% 4.96% 4.58% 2.39%