Beale manufacturing company has a beta of 1.1, and foley industries has a beta of 0.30. the required return on an index fund that holds the entire stock market is 11%. the risk-free rate of interest is 4.5%. by how much does beale’s required return exceed foley’s required return? holmes company’s currently outstanding bonds have an 8% coupon and a 10% yield to maturity. holmes believes it could issue new bonds at par that would provide a similar yield to maturity. if its marginal tax rate is 40%, what is holmes’ after-tax cost of debt?

10. problems and applications q10 a market is described by the following supply-and-demand curves: qsqs = = 2p2p qdqd = = 300â’p300â’p the equilibrium price is $ and the equilibrium quantity is . suppose the government imposes a price ceiling of $90. this price ceiling is , and the market price will be $ . the quantity supplied will be , and the quantity demanded will be . therefore, a price ceiling of $90 will result in . suppose the government imposes a price floor of $90. this price floor is , and the market price will be $ . the quantity supplied will be and the quantity demanded will be . therefore, a price floor of $90 will result in . instead of a price control, the government levies a tax on producers of $30. as a result, the new supply curve is: qsqs = = 2(pâ’30)2pâ’30 with this tax, the market price will be $ , the quantity supplied will be , and the quantity demanded will be . the passage of such tax will result in .