Question: please write the # of the question and the answer letter Break Ever b bul1+ IS. In the absence of target weights, capital structure weights
Break Ever b bul1+ IS. In the absence of target weights, capital structure weights for computing the WACC: A. are based on the book values of total debe and total equity B. are computed using the book value of the long-term debt and the book value of equity C. remain constant over time unless the firm issues new securities D. are based on the market value of the firm's debe and equity securities. E. are restricted to the finm's debt and common stock. 6. What is the expected retum on the portfolio if S0 percent of the funds are invested in stock C, 30 percent in stock A, and 20 percent in Stock D? Possible stocks in the portfolio are the following Stock Expected Return 15% 10 22 14 C A. 16.90 percent B. 16.75 percent C. 17.00 percent D. 18.30 percent E. 20.50 percent 17. Given the following information, ifI were to invest in 100 shares of Stock A, 75 shares of Stock B, and 50 shares of Stock C, what would my portfolio beta be? Resum Bcta Price Pet Shars Stock A Stock B Stock C 12% 20% 16% 1,45 065 1.15 $12.00 $27.50 32.00 A. 0.939 B. 1.012 C. 1.035 D. 1.112 E. 1.188 18. What would not change during a capital restructuring (recapitalization) process? A. Total Invested Capital B. Shares outstanding C. Total equity D. Total debt E. Debe/equity ratio 19. Bron Bron Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $65.00 million in Year 5, and the FCF growth rate is expected to be a constant 65% beyond that point. The weighted average cost of capital is 120% what is the horizon (or continuing) value (in millions) at t-5? A. S,025 B. $1,079 C. $1,136 D. $1,196 E. $1,259
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