U Question 27 The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11.5 percent and the risk-free rate is 3 percent. What is the firm's cost of equity? 14.39 percent 15.50 percent 15.67 percent 12.98 percent 10.05 percent 3 pts Question 28 Black and White has a cost of equity of 11 percent and a pre-tax cost of debt of 8.5 percent. The firm's target weighted average cost of capital is 9 percent and its tax rate is 40 percent. What is the firm's target debt-equity ratio? 51.28 55.72 48.29 57.56 62.03 3 pts Question 29 U Suppose the returns on common stocks are approximately normally distributed. If the average return is 17% and a standard deviation of 12%, what range of returns would one expect to see 95% of the time? -27% to 53% - 19% to 53% O 5% to 29% -7% to 41% Question 30 3 pts State Probability Return on Security A Return on Security B Boom .6 13% 20% Bust 4 -4.5% 3% What is the expected return on Security A? -15% 06.0% 9.6% 4.25% 12.156