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Question 4 3 pts (Chapter 7) You are the CEO of Predator LLC, a leveraged buyout specialist, that recently bought a company and wants to

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Question 4 3 pts (Chapter 7) You are the CEO of Predator LLC, a leveraged buyout specialist, that recently bought a company and wants to determine the optimal time to sell it. You have estimated the after-tax cash flows from the sale at different times as follows: $670,000 if sold today, $775,000 if sold one year later; $950,000 if sold two years later; $1,050,000 if sold three years later; and $1,150,000 if sold four years later. The opportunity cost of capital is 12 percent. When should Predator LLC sell the company? Year 0 Year 1 Year 2 Year 3 Year 4 Question 5 3 pts (Chapters 11 and 13) Stock A has a beta of 0.80 and an expected return of 10.36 percent. Stock B has a 1.25 beta and an expected return of 13.60 percent. Stock C has a 1.50 beta and an expected return of 16.40 percent. Which one of these stocks is correctly priced if the risk-free rate of return is 4.6 percent and the market rate of return is 11.8 percent? (round answer to 2 digit, for example 10.92 percent) Stock A Stock B Stock C Stocks A and B Stocks B and C

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