You just heard that the variance of Super Scooper was just determined to be .1681. You looked at Lincoln Loggers and sees that it has a standard deviation of 49%. How does Lincoln Loggers' variance compare to that of Super Scooper? C8 Super has more volatile returns (B) Lincoln has more volatile returns Super has a higher beta Unable to determine, we only can be sure that the variance of Super is .1681 Unable to determine the how the variance compares with the information given. Question 2 Lancer has a beta of .92 and currently sell for $44.01 per share. It will pay an annual dividend of $2.63 per share next year. The return of market is 7%. Its standard deviation is 68%. The market standard deviation of the market is 55%. What kind of return should an investor in Lancer expect? C8 7% More than 7% Less than 7% (D) Unknown since no risk free rate is given Which of the following is not a source of capital for a firm? C10 Notes payable Retained Earnings Capital Equipment New Common Stock They all are sources of capital Question 4 Sedoco has an expected return of 7.8% and a variance of .064 . The risk-freetrate is 3.4%. What's Coefficient of Variation? C8 .1739 .1433 3.24 2.16 1.86 Male's Nails has an expected return of 7.4%, a beta of .84 , and the market risk premium is 6.1%. What is the rate of a treasury bill? C8 2.41% 2.28% 1.44% 1.94% Unable to determine based on the information given Question 6 Pulsar Preferred stock sells for $108. It pays a dividend $6.30. What is the dividend yleld for stock this? C9 5.8% 6.1% 4.8% 4.2% 5.7% Scooby Snacks has a beta of 1.04 . The market risk premium is 4.8%. Treasury bill is at 2.1%. Growth is 4%. What is the required return for Scooby Snacks? C9 7.3% 8.4% 7.1% 5.6% 6.7% Question 8 Block stock sells for $31 per share. It just paid a dividend of $1.14 per share. The company has a growth rate of 4% annually. The return of market is 6%. T-bills have a rate of 2.5%. The bond-yield risk premium is 4%. Block's beta is 1.17 . What is the cost of equity for Block? C10 6.4% 10.6% 7.2% 8.39% 12.196