A firm has book equity of $450 million, debt of $420 million, and excess cash of $120 million. Its current stock price is $77/share, and its market capitalization is 1.33 billion. Its CAPM beta is 1.60. The tax rate is 21%. Yield to maturity on its debt is 5.0%. If the relevant risk-free rate is 2.0% and expected return on the market is 7%, what rate should we use to discount the free cash flows of this firm's typical projects? Pick the closest answer. 4% 5% 6% 7% 8% 9% 10% 11% Question 4 5 pts You will split $20,000 between two stocks: Sea Limited and Zoom Video Communications. Sea has an expected return of 12% and a standard deviation (o) of 17%. Zoom has an expected return of 9% and o of 28%. What will be the standard deviation of your portfolio if you put $15,000 into Sea and $5,000 into Zoom, and the correlation between Sea and Zoom is -0.2 (negative)? Pick the closest answer. 12% 15% 18% 21% 24% 27% A firm has book equity of $450 million, debt of $420 million, and excess cash of $120 million. Its current stock price is $77/share, and its market capitalization is 1.33 billion. Its CAPM beta is 1.60. The tax rate is 21%. Yield to maturity on its debt is 5.0%. If the relevant risk-free rate is 2.0% and expected return on the market is 7%, what rate should we use to discount the free cash flows of this firm's typical projects? Pick the closest answer. 4% 5% 6% 7% 8% 9% 10% 11% Question 4 5 pts You will split $20,000 between two stocks: Sea Limited and Zoom Video Communications. Sea has an expected return of 12% and a standard deviation (o) of 17%. Zoom has an expected return of 9% and o of 28%. What will be the standard deviation of your portfolio if you put $15,000 into Sea and $5,000 into Zoom, and the correlation between Sea and Zoom is -0.2 (negative)? Pick the closest answer. 12% 15% 18% 21% 24% 27%