The stock expected return and standard deviation

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Reference no: EM132040503

1. What is a firm's weighted-average cost of capital for a firm that is financed 45% by debt? The debt has a 10% required return and the equity has a 17% required return. The tax rate is 35%.

2. A stock will provide a rate of return of either 24% or 36%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Reference no: EM132040503

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