1. Baxley Brothers has a DSO of 19 days, and its annual sales are $10,950,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest cent.
2. The expected return on the market portfolio is 11%, while treasury bills are yielding 1.8%. What expected return is predicted by the CAPM for a stock with a beta of 0.7?
3. Project L costs $55,000, its expected cash inflows are $10,000 per year for 12 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.