1. What are the risks assumed by the Investment Company and those assumed by the Client for each of a firm commitment securities offering and a best efforts offering?
2. Smathers Corp. stock has a beta of 1.14. The market risk premium is 7.90 percent and the risk-free rate is 3.33 percent annually. What is the company's cost of equity? Select one: a. 8.54% b. 10.44% c. 8.30% d. 8.07% e. 12.34%
3. McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $3.85 per share with the first dividend exactly 15 years from today. If the required return is 3.63 percent, what is the current price of the stock? Select one: a. $62.13 b. $59.95 c. $106.06 d. $64.38 e. $102.35