Question 53 (1 point) Food Inc. has failed to sell any type of debt. The company has 40.000 common shares outstanding, and 10,000 preferred shares outstanding. The preferred shares pay $2.00 per year in dividends and are traded at $40 per share. The last dividend paid to common stockholders was $5 per share and the company expects to grow at 2% forever. The current price of the common stock is $80. What is the expected return on the common stock? 7.516% 8.375% 6.678% 9.256% 10.001% Question 51 (0.5 points) You have finally compiled your perfect portfolio. What is the beta of your perfect portfolio? The risk-free rate is 3%, the market return is 8%. Stock A B D E Amount Invested $4 million $2 million $2 million $1 million $1 million Beta 1.8 1.6 1.4 0.8 0.4 0.76 1.45 1.44 O 1.52 0.80 Question 49 (1 point) French Corporation has 500,000 shares of common stock that sells for $25 per share and has a beta of 1.5. Treasury Bills are yielding 4% and the market return is expected to be 12%. The company has 10.000 bonds outstanding with a $1,000 face value, a $1,100 market price, and YTM of 4.5%. There are also 100.000 shares of preferred stock that pays a $3 annual dividend and sells for $30 per share. Assuming a 40% tax rate, what is the French Corporation's WACC? 10.35% 10.17% 9.80% 10.55%