1. Multiple compounding: Darius Miller is seeking to accumulate $50,000 in six years to invest in a real estate venture. He can earn 6.35 percent annual interest with monthly compounding in a private investment. How much will he have invest today to reach his goal? (Round the number.)
a. $47,015
b. $37,527
c. $34,193
d. $31,648
e. none of the answers is correct
2. FLIR Systems Inc has a beta of 2.67 and the expected market return is 0.12. If Treasury bills are currently yielding 0.03 percent, find the cost of capital for FLIR Systems Inc (round your answers).
a. 19.7%
b. 27.0%
c. 15.6%
d. 31.4%
e. none of the answers is correct