1. Kelly invested in two stocks. She put 22% into stock A, which has an expected return of 9.3%, and the rest into stock

[answerhappygod]

1. Kelly invested in two stocks. She put 22% into stock A, which
has an expected return of 9.3%, and the rest into stock B, with an
expected return of 14.8%. What is the expected return of her
portfolio? (Note: Round your answer to 3 decimal
places. For example, if your answer is 8.7%, you should write 0.087
in the answer box. DO NOT write 8.7 in the box as you will be
marked wrong).
2. Company A is financed by 18% of debt and the rest of the
company is financed by common equity. The company’s before-tax cost
of debt is 4.5%. Currently the risk-free rate is 1.8%, the market
risk premium is 6%, and the stock has a beta of 1.6. If company A
faces a marginal tax rate of 30%, its weighted average cost of
capital (WACC) should be _____. (Note: Round your
answer as decimals with three decimal places. For example, if your
answer is 8.7%, you should write 0.087 in the answer box. DO NOT
write your answer as percentages as you will be marked
wrong.)