An electronic store receives shipment

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1. An electronic store receives a shipment of 25 graphing calc. including six that are defective. Four of these calculators are selected to be sent to a local high school. How may of these selections will contain NO defective calculators?

a. 3,060

b. 3,876

c. 5,392

d. 7,642

e. 10,626

2. To estimate the company's WACC Marshall, Inc. recently hired you as a consultant. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8% annual coupon, a par value of $1000, and a market price of $1050. (2) The company's tax rate is 40%. (3) The risk rate is 4.50%, the market risk premium is 5.50%, and the stocks beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is it's WACC?

a. 8.35% b. 8.79% c. 7.54% d. 7.93%

Reference no: EM132061104

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