Consider the multifactor APT with two factors. Portfolio A has a beta of 0.04 on factor 1 and a beta of 0.99 on factor 2. The risk premiums on the factor 1 and 2 portfolios are −1% and 9%, respectively. The risk-free rate of return is 4.0%. The expected return on portfolio A is __________ if no arbitrage opportunities exist.

A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information, which of the following statements is (are) definitely correct? All else equal, the firm’s growth rate will accelerate after the payout change. All else equal, the firm’s stock price will go up after the payout change. All else equal, the firm’s P/E ratio will increase after the payout change.

Firm A acquires firm B when firm B has a book value of assets of $295 million and a book value of liabilities of $105 million. Firm A actually pays $315 million for firm B. This purchase would result in goodwill for firm A equal to __________.

You buy a 10-year $1,000 par value zero-coupon bond priced to yield 6%. You do not sell the bond. If you are in a 28% tax bracket, you will owe taxes on this investment after the first year equal to __________.

A callable bond pays annual interest of $80, has a par value of $1,000, matures in 16 years but is callable in 8 years at a price of $1,080, and has a value today of $1,061.91. The yield to call on this bond is __________.

The expected return on the market portfolio is 17%. The risk-free rate is 9%. The expected return on SDA Corporation common stock is 16%. The beta of SDA Corporation common stock is 1.80. Within the context of the capital asset pricing model, __________.

Yields on municipal bonds are generally lower than yields on similar corporate bonds because of differences in __________.

Weyerhaeuser Incorporated has a balance sheet that lists $63 million in assets, $47 million in liabilities, and $16 million in common shareholders’ equity. It has 1 million common shares outstanding. The replacement cost of its assets is $89 million. Its share price in the market is $41. Its book value per share is __________.

Fall protection is required in general industry at what height?

Which is NOT a fall protection method?