1.A corporation's securities have the following betas and market values:
a.Beta Market Value ($)
b.Debt 0.1 100000
c.Preferred 0.4 200000
d.Common 1.5 100000
2.Calculate the following figures given a riskless rate of 10% and market risk premium of 5%:
a. Discount rates for each security
b. The asset beta for the corporation
c. The weighted average cost of capital
d. The discount rate for the unlevered assets.