1. Homeowners insurance policies can be divided into two sections. Describe them.
2. Sixx AM Manufacturing has a target debt equity ratio of .45. Its cost of equity is 13 percent, and its cost of debt is 6 percent. If the tax rate is 35 percent, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16))
3. You purchased an investment for $2,500 on which you earned $130 in income last year. The inflation rate during that time was 1.25%. What was your real rate of return?