You want to save $50,000 by age 40 - 18 years from now. If you can earn 6% each year, how much would you need to invest today? 2 IA 20 year semiannual bond has a 8% coupon rate and par value of $1,000. The required return by investors is 9%. How much would an investor be willing to pay for this bond? 3 Make-Up Masters stock has a beta of 1.8; the risk free rate is 3% and the market risk premium is 7%. What is the required return by investors for Make-Up Masters stock? 4 12% Calculate WACC for a firm with the following data: Market Value of Stock 1,000,000 Market Value of Debt 1,800,000 Market Value of Preferred Stock 200,000 8% 10% The firm's tax rate is 25% 5 Describe the best financial tool for evaluating projects