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ms.office.com/Pages/ResponsePage.aspx?id=YZn5wFdGSK2QV6nQDi35mVs dvwHGk9BmuAkXCOLUIBUNINVSC 3. IBM has a beta of 1.2. The market return equals 15 percent and the risk-free rate of return equals 5 percent. Calculate

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ms.office.com/Pages/ResponsePage.aspx?id=YZn5wFdGSK2QV6nQDi35mVs dvwHGk9BmuAkXCOLUIBUNINVSC 3. IBM has a beta of 1.2. The market return equals 15 percent and the risk-free rate of return equals 5 percent. Calculate the estimated cost of common stock equity (2 Points) Enter your answer 4 Should Arab company accept a new project ifits maximum payback is 3.5 years and its initial after tax cost is $5,500,000 and it is expected to provide after-tax operating cash inflows of $ 800,000 in year (1), $1,900,000 in year (2) $700,000 in year (3) and $1.800.000 in year (4)? (3 Points) Yes NO O None of the above 5. Calculate the approximate after-tax cost of debt for a 20-year, 7 percent $1,000 par value bond selling at $960 (assume a marginal tax rate of 40 percent) (2 Points) Enter your answer 6. Dell has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent Calculate he cost of Dell's common stock equity (2 Points) Enter your answer 2. There are maintenses wandelines and artists Ramastante O 1 it 8. You are planning to purchase the stock of Batelco, and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today? (2 Points) Enter your answer 9. Ali purchased some shares of Alba common stock for $36 per share one year ago. During the year. Alba paid cash dividends of $2 per share. The stock is currently selling for $35 per share if Ali sells all his shares of Alba today, apply a range of specialized skills to find the rate of return Ali would realize (2 Points) Enter your

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