Phillips equipment has 75,000 bonds outstanding that are selling at par. bonds with similar characteristics are yielding 7.5 percent. the company also has 750,000 shares of 6 percent preferred stock and 2.5 million shares of common stock outstanding. the preferred stock sells for $64 a share. the common stock has a beta of 1.21 and sells for $44 a share. the u. s. treasury bill is yielding 2.3 percent and the return on the market is 11.2 percent. the corporate tax rate is 34 percent. what is the firm's weighted average cost of capital?

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.