Q1. Assume that ABC Firm has an optimal capital structure; comprised of debt, preferred stock and common equity. In this scenario, Firm currently has 48 percent debt, 4 percent preferred stock and 57 percent common equity in its capital structure. Firm's before-tax cost of debt is 10 percent and corporate tax rate is 40 percent; beta for common stock is 0.85 with market return 14 percent and T-bills return 10 percent; whereas cost of preferred stock is 10.3 percent.

Q2. The gravitational force between two electrons that are 0.92 m apart is 6.40 x 10-71 N. Find out the mass of an electron. (Use G = 6.67 10-11 N • m2/kg2.)