1. Lannister Manufacturing has a target debt−equity ratio of .60. Its cost of equity is 15 percent, and its cost of debt is 4 percent. If the tax rate is 35 percent, what is the company’s WACC?
2. What is the value of share of preferred stock that promises to pay $1.20 every year,indefinitely, if you have a required rate of return of 8.21%?
3. A stock has monthly returns of -17.69% , -17.01% , 22.08% , and 25.99% . What is the stock’s geometric average return?
4. Explain the term strategy and its relation to project?