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11) If an investor put AED 930,000 in the bank earning 8.5%, then she could...

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11) If an investor put AED 930,000 in the bank earning 8.5%, then she could withdraw the annual interest of AED every year forever without touching the initial amount (principal). A) AED 109,411 B) AED 93,000 C) AED 79,050 D) AED 857,142 12) The price of a preferred stock is AED 1,451 and the dividends are AED 380. Then, the required rate of return is: A) 26.18% B) 3.81% C) 20% D) 38.1% 13) Two assets X and Y are perfectly positively correlated. Then, the value of the correlation coefficient is: A) 100 B) -1 C) 1 D) close to +1 14) A company has a weighted average cost of capital of 11.5%. Its capital structure is equity and debt. The before-tax cost of debt is 9 percent. Company's flat tax rate is 30%. What is the company's cost of equity if its weight is 55%? A) 15.75% B) 15.65% C) 8.66% D) 13.54%

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