The market risk premium is 6 percent and the risk-free rate is 3 percent. The Watson Company's beta is 1.4. What is the firm's cost of equity? 8.60% 7.20% 11.40% 13.67% If a project is acceptable by the internal rate of return technique, which rule below is applicable? IRR > 1 IRR > required return IRR > 0 IRR > payback period A $1,000 face value bond currently has a yield to maturity of 12.62 percent. The bond matures in 16 years and pays interest annually. The coupon rate is 9.75 percent. What is the current price of this bond? $1,098.42 $806.54 $767.76 $866.78