What is the rate of return from an investment that costs $40,000 and promises to pay the investor $7,000 at the end of each year for the next 11 years? O a. 12.89% O b. 17.50% OC 16.67% O d.5.71% QUESTION 20 Loyola Corporation has a target capital structure of 40% bond financing, 10% preferred stock financing, and 50% common equity financing. Loyola forecasts it will retain $2,500,000 of new earnings in the coming year. Where is the break in Loyola's cost of capital schedule? O a. $ 2,500,000 O b.$ 6,250,000 Oc$ 25,000,000 Od. $ 5,000,000 QUESTION 21 What is the beta of the following two stock portfolio? Security Beta of the security. Amount invested A 1.35 $ 20,000 0.50 $ 30,000 B O a. 1.19 O b.0.84 O c. 1.00 O d. 1.075