1. What is the profitability-producer surplus of Delta Airlines and their product quality
2. Calculate the Levered Beta for a firm that has a debt to equity ratio of 120%, a tax rate of 30% and an Unlevered Beta of 1.25.
3. Suppose Paycheck, Inc., has a beta of 1.00. If the market return is expected to be 12.70 percent and the risk-free rate is 4.70 percent, what is Paycheck’s risk premium? (Round your answer to 2 decimal places.)
Paycheck’s risk premium= %