The Strong Co. has invested 40 percent of the firm's assets in a project with a beta of 1.2 and the remaining assets in a project with a beta of 1.6. What is the beta of the firm?
			A)		1.31
			B)		1.44
			C)		1.90
			D)		1.72
Shell Drilling, Inc., has a beta of 1.40 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 2.5 percent and the expected return on the market is 11 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 40 percent?
		A)		15.6%
		B)		12.8%
		C)		9.1%
		D)		14.4%
Sunny Resorts is redoing its golf course at a cost of $4,400. It expects to generate cash flows of $ 1,800, $2,200, and $2,600 over the next three years. If the cost of capital for the firm is 12 percent, what is the NPV of this project?
		A)		$528
		B)		$630
		C)		$812
		D)		$252
Pure Water, Inc., is expected to pay a dividend of $1.24 one year from today. If the firm's growth in dividends is expected to remain at a flat 5 percent forever and its marginal tax rate is 30 percent. What is the cost of equity capital for Pure Water if the price of its common shares is currently $20.00?
		A)		9.91%
		B)		11.20%
		C)		8.80%
		D)		12.50%
James Corporation has semiannual bonds outstanding with 10 years to maturity and are currently priced at $860. If the bonds have a coupon rate of 6 percent with semiannual coupon payments. What is the after-tax cost of debt for Bill if its marginal tax rate is 35%?
		A)		6.67%
		B)		4.71%
		C)		7.37%
		D)		5.24%
Devin Corporation has just paid a dividend of $1.80. The company has forecasted a growth rate of 7 percent for the next several years. If the appropriate required rate is 12 percent, what is the current price of this stock?
		A)		$36
		B)		$23
		C)		$31
		D)		$56
Shine Inc., has found that its cost of common equity capital is 14 percent and its cost of debt capital is 9 percent. If the firm is financed with $14,000 of common shares and $6,000 of debt, then what is the after-tax weighted average cost of capital for Shine's if it is subject to a 25 percent marginal tax rate?
		A)		10.04%
		B)		10.65%
		C)		9.91%
		D)		11.83%