Rossdale Co. stock currently sells for $73.31 per share and has a beta of 1.24. The market risk premium is 6.90 percent and the risk-free rate is 2.82 percent annually. The company just paid a dividend of $4.37 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely What is your best estimate of the company's cost of equity? Multiple Choice 10.39% 9.13% 7.88% 11.19% 9.53 King Nothing is evaluating a new 6-year project that will have annual sales of $490,000 and costs of $332,000. The project will require fixed assets of $590,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 40 percent. What is the operating cash flow for Year 3? Multiple Choice O $140.112 O $121,987 $134,133 $108,512 $162,768 A portfolio has an expected return of 13.4 percent. This portfolio contains two stocks and one risk-free security. The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent. The risk-free rate is 4.1 percent. The portfolio value is $48,000 of which $10,000 is the risk-free security. How much is invested in Stock X? Multiple Choice $21,548.19 U $18.478.87 $16,904.72 $22,200.14 $19,514.14 Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,900,$9,900, and $16,100 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 10 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.? Multiple Choice $30,900.00 $32.908,50 $25.96415 $23,400.53 $24.732.53