1. You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000, $90,000, and $60,000 in assets A, B, and C, respectively. A, B, and C have expected annual returns of 15%, 18%, and 6%, respectively. The expected return of this portfolio is ______%? Round it to two decimal places.

2. The present value of a perpetual tax shield increases as the firm's tax rate _____ and as the amount of the debt _____

increases; increases

increases; decreases

decreases; decreases

decreases; increases