Corporate Finance questions
1. What is the expected return on asset X if it has a beta of 0.3, the expected market return is 14%, and the risk-free rate is 5%?
2. TChocoFact Co. needs $14 million to finance a new project. The company plans to issue new shares of common stock at a price of $19 per share to fund this project. The underwriting fee is 7%. How many new shares of stock must company issue?