Suppose you buy 400 shares of TBQ at $160 per share and 600 shares of RDR at $60 per share. If TBQ s share price goes up to $200 and RDR s falls to $46.67, after the price change, what is the portfolio weight (%)of RDR?

a. 80% b. 64% c. 25.9% d. 68.45% e. 74.1%

TBQ has just issued a callable (at par) ten-year 5% annual coupon bond. The bond can be called at par in one year. It matures at face value of $100. It has a price of $ 103. What is the bond's yield to call?

a. 5% b. 5.3% c. 4.62% d. 2.16% e. 1.94%

TBQ has a market capitalization of $10 million, and $2.5 million in outstanding debt. Suppose their beta is 1.20, the risk-free rate is 2%, and the expected return of the market is 7%. TBQs debt cost of capital is 9.75% and their corporate tax rate is 20%. What is the after-tax debt cost of capital?

a. 3.6% b. 6% c. 7.8% d. 9.2% e. 10.2%