Q1 Using the below table, compute the arithmetic and geometric return.

Year	Actual Return
1	35%
2	25%
3	10%
4	-40%
5	20%

Q2. Compute the after-tax cost of debt for a 15-year, 12 percent coupon rate, $1,000 par value bond, and selling at $950. The tax rate is 21 percent.

Q3. A firm has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. Compute the cost of the preferred stock.