1. What are the current environment for raising capital for start-up companies?
2. Assume that the risk-free rate is 5.5% and the required return on the market is 10%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.
3. Mayflower, Inc. has some 7% semi-annual coupon bonds on the market selling at $1,012. The bonds have 9 years left to maturity. What is the effective annual yield on these bonds?