Question: help please! Question 33 2 pts Leverage: I. involves risk (the more leverage, the more risk) II. can make the firm's ROE larger than its


Question 33 2 pts Leverage: I. involves risk (the more leverage, the more risk) II. can make the firm's ROE larger than its ROA o I only Il only BOTH I and II O NEITHER I nor II Question 36 3 pts A small-cap company is considering a project that has an initial estimated outlay of $150,000. The project is forecast to produce annual after-tax cashflows of $35,000 for 5 years and $30,000 in year 6. the final year. The issuer's WACC is 14.3%. The tax rate is 40%. What is the project's payback period? It can not be determined from the information given. between 3 and 4 years between 5 and 6 years between 4 and 5 years Question 41 3 pts Use CAPM to determine the required return on Insatiable Restaurants, Inc., common stock, given: expected return on the market beta of Insatiable Restaurants stock nominal risk-free rate 7% 1.1 2% 9.9% O 9.0% 7.5% 6.4% O 9.7%
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