Question: URGENTLY NEEDED 1. What is the expected return on the market portfolio if the required rate of return on Asset A is 15%, the risk-free

 URGENTLY NEEDED 1. What is the expected return on the market URGENTLY NEEDED

1. What is the expected return on the market portfolio if the required rate of return on Asset A is 15%, the risk-free rate is 6% and Asset A has a beta of 0.9 ? A. 8.1% B. 14.1% C. 16.0% D. 19.5% 2. Olympic Company's marginal tax rate is 30 percent. It can issue 3-year bonds with a coupon rate of 8.5 percent and par value of $100. The bonds can be sold now at a price of $98.20 each. The underwriters will charge $2 per bond in issue costs. Determine the appropriate after-tax cost of debt Olympic should use in a capital budgeting analysis. A. 7.00% B. 3.85% C. 6.30% D. 5.74% 3. Tom's Trashbin Ltd. has fixed costs of $225,000. Tom's rubbish bins sell for $45 and have a unit variable cost of $20. What is Tom's break-even point in units? A. 8,500 B. 9,200 C. 9,000 D. 8,750

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!