finance-The risk premium for an investment is 3 percent.

QUESTION

Does anyone know the answers to these questions?1. The risk premium for an investment is 3 percent. The inflation premium is 4 percent. If the pure rate of interest in the market is 4.5 percent, what should be the yield on a risk-free security? Use exact formulation.A.7.12%B.6.60%C.8.16%D.7.64%E.6.08%F.8.68%G.9.20%H.9.72%2.The Bank of Loans uses the following rating scheme to classify the riskiness of its customers.Risk ClassRisk Premium (%)Prime.05High grade1.0Upper medium grade1.5Lower medium grade2.0Speculative: Non-investment grade4.0Speculative: Highly6.0Substantial risks9.0Extremely speculative12.0 The bank’s pure rate of interest is 2.0% and the inflation premium is 3%. What rate would the bank offer a customer who is in the lower medium grade risk class?A.8.74%B.8.21%C.9.26%D.6.64%E.9.79%F.7.16%G.7.69%H.10.31%3.Lowell Growth, Inc. has total debt ratio of 0.48 and a dividend payout ratio of 40 percent. If its profit margin is 9.5 percent and total asset turnover is 3.75, what is its return on assets ratio (ROA)?A.31.5%B.24.0%C.40.0%D.27.6%E.35.6%F.20.6%G.17.5%H.14.6%

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