Question 41 2 points Save Answer Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.50, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations. a. 15.80% b. 16.77% c. 20.09% d. 21.65% e. 19.50% Save Answe Question 39 2 points Dothan Inc.'s stock has a 25% chance of producing a 36% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return? Do not round your intermediate calculations. a. 9.14% b. 10.50% O c. 11.76% d. 9.35% O e. 10.40% Question 38 2 points Save Answe Taggart Inc.'s stock has a 50% chance of producing a 46% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return? Do not round your intermediate calculations. a. 20.40% b. 22.24% c. 20.60% d. 21.83% e. 18.16% Question 35 2 points Save Answer Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 9.5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? a. $980.00 b. $1,010.00 c. $1,000.00 d. $1,140.00 O e. $1,220.00