Question: 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

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.

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