which of the following projectsT 9 miltlion A) C, D, E B) A, B, C C) B, C, D D) A, D, E 20) You were hired as a consultant to Bennett Company, whose target capital structure is 40% delt 15% preferred 20 and 45% common equity. If the total value of the capital is S26,w.then what is the value of 'he pref ?)$10,616 B) S3.981 d) SI 1.943 DS5264 21) The primary conclusion of the Capital Asset Pricing Model is that A) a balance sheet reports a company's financial position at a specifie point in tirme 21. B) bonds are a riskier investment option when compared to stocks. D) the relevant riskiness of a stock is its contribution to the riskiness of a 22) You are given the following probability distribution for possible returns of a stock. of company health. Calculate the expected rate of return. 22. Poor Average Good Excellent 0.2 0.3 5% 18% 25% 32% 0.4 A)14.596 B)506% C)23.1% D) 20.2% is 6% and 23. 23) Use the CAPM Model to estimate the rate of return for the following stocks. The given risk free rate the market rate is 14% Stock Beta A 0.80 ? 0.95 C 1.20 A) A-12.4; B-13.6; C-15.6 B) A-1 1.2; B-1 5.3; C-18.2 C) A-15.0; B-12.1; C-11.2 D) Not enough information given 24. 24) In the graph of probability outcomes below, the top of the curve represents the Rate of Return (%) 100 20 A) Limited Liability. C) Reinvestment Risk. B) Investment Alternatives. D) Expected Rate of Return