Question 20 (1 point) Using data given below, calculate the "beta" of a portfolio formed using Stock A and Stock B. Stock A beta Beta = 1.5; Proportion of funds invested in Stock A = 60% Stock B beta Beta = 0.5; Proportion of funds invested in Stock A = 40% 2.0 1.0 1.1 0.9 Question 21 (1 point) A firm has a total market value of $100 millions. The market value of debt is $40 millions and that of equity is $60 millions. The before tax cost of debt is 12%. The cost of equity is 20%. Calculate the weighted average cost of capital (WACC): (Assume tax rate T = 21%) (approximately) 13.2% 15.8% 16.8% 12.32% Question 22 (1 point) A firm has a total market value of $200 millions. The market value of debt is $120 millions and that of equity is $80 millions. The before tax cost of debt is 15%. The cost of equity is 20%. Calculate the weighted average cost of capital: (WACC): (Assume tax rate T = 35%) 15.9% 13.85% 12.32% 13.2% Question 23 (1 point) Michigan Corporation has its common stock selling for $60/share and the current dividend (D) is $3.00/share. If dividends and expected to grow at 8% per year; then the firm's cost of common equity is: 12.32% 12.8% 13.4% 10.4%