Suppose market risk premium is currently 7.2 percent and the risk-free rate of return is 1.75 percent, then what is the expected return on a common share with a beta equal to 1.2?
			A)		11.44%
			B)		12.21%
			C)		10.39%
			D)		7.60%
What is the beta of a firm whose equity has an expected return of 14.2 percent when the risk free rate of return is 3 percent and the expected return on the market is 11 percent?
		A)		1.56
		B)		1.30
		C)		1.40
		D)		1.92
Next year Tom Traders will pay a dividend of $3.25 It expects to increase its dividend by $0.50 in each of the following two years. If their required rate of return is 10 percent, what is the present value of their dividends over the next three years?
		A)		$9.25
		B)		$8.92
		C)		$8.10
		D)		$10.14
News Inc., stock is selling for $84. If the required rate of return for such stocks is 9 percent, what is the quarterly dividend paid by this firm?
		A)		$7.56
		B)		$6.48
		C)		$2.20
		D)		$1.89
Safety Company is installing new equipment at a cost of $85,000. Expected cash flows from this project over the next four years will be $25,000, $31,000, $38,000, and $42,000. The company's cost of capital is 9 percent. What is the project's discounted payback period?
		A)		3.22 years
		B)		3.10 years
		C)		3.39 years
		D)		more than 4 years
Denver Corporation is investing in a new piece of equipment at a cost of $3.5 million. The project is expected to generate annual cash flows of $625,000 over the next ten years. The firm's cost of capital is 11 percent. What is the project's NPV?
		A)		$180,770
		B)		$99.611
		C)		$135,524
		D)		$167,463
Sun Corp. sells household cleaners producing a revenue stream that has remained unchanged in the last few years. The firm does not expect any change in its dividends in the future. The stock is currently selling at $32.00. If the required rate of return is 10 percent, what is the quarterly dividend paid by this company?
		A)		$.80
		B)		$1.20
		C)		$3.20
		D)		$1.05