1. If spivey is able to sell preferred stock at 15% $ raise common stock equity at 16.5%. What is the corporation weighted average cost of capital when its target capital structure is 30% debt, 55% common stock equity and 15% preferred stock?
2. Are Derivative instruments beneficial to society? Explain why?
3. A portfolio has an expected return of 13% and a standard deviation of 20%. The risk-free rate is 4%. What is the Sharpe ratio of the portfolio?