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 WACC?

a. 5%

b. 6.25%

c. 7.95%

d. 8.00%

e. 9.2% How would you classify the Microsoft investment in OpenAI?

a. Private Equity

b. Venture Capital

c. Corporate Investor

d. Institutional Investor

e. Angel Investor

Assume your portfolio consists of $60,000 of TBQ stock and $40,000 of RDR. Your expected return is 24.00% for TBQ and 19.00% for RDR. What is the expected return for your portfolio?

a. 24%

b. 22%

c. 21%

d. 20%

e. 19%