Your estimate of the market risk premium is 5%. The risk-free rate of return is 4%, and General Motors has a beta of 1.3. According to the Capital Asset Pricing Model (CAPM), what is its expected return? OA. 10.5% B. 10% OC. 9.5% OD. 11% The outstanding debt of Berstin Corp. has ten years to matunty, a current yield of 8%, and a price of $90. What is the pretax cost of debt if the tax rate is 40% Note: The current yield of a bond is its annual coupon divided by its price. A. 8% B. 6.99% OC. 5.24% OD 8.74%