1) The systematic risk of the risk-free asset is measured by:
A) Standard Deviation of 0.0
b) A beta of 0
C) A beta of 1.0
D) A standard deviation of 1.0
2) What prportion of a firm is equaity financed if the WAVV is 15%, the before tax cost of debt is 10.77% the rate is 35%, and the required return of equity is 18%?
A) 70.26%
B) 72.73%
C) 77.78%
D) 54.00%
3) What would you estimate to be the required rate of return for equity investors if a stock sells for $50 and will pay a $2 divident that is expected to grow at a constant rate of 5%?
A) 9%
B) 10%
C) 12%
D) 15%
Please give a little explantion or show work.