QUESTION 3 The stock of Keif Corp has an expected return of 15%, and Fireball Corp has an expected return of 20%. If you put 30% of your money in Keif and 70% in Fireball, what is your expected return for your portfolio? O 15.50% 17.50% 18.50% 19.50% QUESTION 4 YGTB, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require an 11 percent return on the YGTB stock, what is the current price? $46.80 $42.36 $50.18 $32.14 QUESTION 5 Adventureland corporation offers 8 percent coupon bonds with semiannual payments and a yield to maturity of 6 percent. The bonds mature in 8 years. What is the market price per bond if the face value is $1,000? $1,125.61 $1,124.20 $1,037.17 $1,028.06 QUESTION 6 A capital investment project is estimated to have the following after-tax cash flows, by year: 0 1 2 3 4 | $,5000 $2,000 $1,200 $1,000 $4,000 The company utilizes a discount rate of 10% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows occur evenly over the year. The NET PRESENT VALUE (NPV) for the project shown above is: $978.64 $1,023.68 $1,103.15 $1,293.29 QUESTION 7 Company ABC's stock sells for a price of $60 per share and has a beta of 1.1. The market risk premium is 7% and the risk free rate is 2%. The company's cost of common stock is: O 9.70% 11.00% 8.50% 5.50%