will rate

22. A common stock has a beta of 0.9. The risk-free rate is 3% and the market risk premium is 8%. Calculate the required rate of return for the common stock. a. 10.20% b. 8.00% c. 7.50% d. 7.20% e. 4.50% 23. A project costs $200,000 (initial outlay). In each of the next twenty years, it will produce annual revenues of $200,000, cash operating expenses of $140,000, and annual depreciation expense of $10,000. The firm is in the 30% marginal tax bracket. What is the annual cash flow in years 120 ? a. $25,000 b. $35,000 c. $45,000 d. $50,000 e. $52,000