References Aa v A Business Finance NO KEYS Summer 2020 - Compatibility Mode - Saved to my Mac Mailings Review View Tell me E 21 RACE AalbCeDdl Albede A) Albcd A) Alibd Emphas Heading 2 Headings Heading 4 D). (18) E). None of above 17. An investment analyst estimates the following regression between the return on a stock (R) and the return on S&P 500 index (RSP): R-5% + 1.2 RSP + error term Assuming error term is zero ("O"), Estimate the change in the return on the stock when the return on the S&P 500 index changes from 11% to 14%. A). 4.5% B). 3.6% C). 5.3% D). 6.8% E). 3.4% 18. A corporate bond currently yields 8.5 percent. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5 percent. At what tax rate would investors be indifferent between the two bonds? a. 35.29% b. 40.00% c. 24.67% d. 64.71% e. 30.04% 19. Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate Prime rate +2%. ed States) Focus MacBook Pro