44. A company's beta (from the CAPM) is affected by its capital structure. 48. What is the expected return on a risky investment where

• the risk free rate is 5.1%
• the investment's beta is 1.4
• the equity market risk premium is 5.0%
• the cost of debt is 4.5%

• 10.8%
• 9.6%
• 12.1%
• 9.2%

• True
• False

34. Share repurchases and dividend payouts are most likely to differ in their

• effects on a firm's capital structure
• effects on corporate taxes
• effects on corporate cash flow
• effects on shareholders' personal taxes

40. Enterprise Free Cash Flows should include: I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements

• I and IV
• I, II and IV
• I , III and IV
• I, II, III, IV