1. Pollo Inc.'s 7.38% bonds have a YTM of 10.25%. The estimated risk premium between the company's bonds and stocks is 6%. Pollo's cost of common equity, Re, is ____%.
2. Samba Corp. has come up with the following estimates: Be=1.5, Bd=0.1, book value of debt = 100, market value of debt =120, market value of equity = 80, and the tax rate = 20%. Calculate the asset beta Ba.
3. Denver Interiors, Inc., has sales of $920,000 and cost of goods sold of $700,000. The firm had a beginning inventory of $39,000 and an ending inventory of $45,000. What is the length of the inventory period?