Ph lc 3: Mu thi hc phn - Foxit PDF Reader Tell me... File Home Comment View Form Protect Foxit eSign Share Help T Hand Select SnapShot Clipboard Zoom Page Fit Reflow Rotate Typewriter Highlight Start < < < 2/2 Option View Fundamentals of Corpo... Ph lc 3: Mu thi h... x Link Bookmark File Image Attachment Annotation & Video Audio QUESTION 3 (1.5 marks) Consider the following information: Standard Deviation Beta Security A Security B 15% 1.55 35% 0.90 a) Which security has more total risk? b) Which security has more systematic risk? c) Which security should have the higher expected return? Why? EQ QUESTION 4 (3.5 marks) The company XYZ has 2.5 million share of common stock outstanding and 60,000 bonds (par value of the bond is $1,000) with semi-annual coupon payments of $40 per bond. The bonds have 8 years to maturity and sell for $900. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 21 percent. What is the Company's weighted average cost of capital? ! Search ENG US Find PDF Word + 100% 4:18 CH 20/12/2022