Consider the following information: 3 Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .67 Stock A Stock B Stock C .10 .04 .14 -.05 25 33 20 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g. 32.16161.) a. Expected return b. Variance of portfolio 6 Jiminy's Cricket Farm issued a 30-year, 6.6 percent semiannual bond 6 years ago. The bond currently sells for 108.1 percent of its face value. The book value of this debt issue is $152 million. In addition, the company has a second debt issue, a zero coupon bond with 10 years left to maturity, the book value of this issue is $99 million, and it sells for 62.5 percent of par. The company's tax rate is 22 percent. What is the total book value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g. 1,234,567.) Total book value of debt 251,000,000 What is the total market value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Total market value $ 226,187,000 What is the aftertax cost of the 6.6 percent coupon bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 6 Aftertax cost of debt What is the aftertax cost of the zero coupon bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt 1% What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)