Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.   ​ ​ Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y 1.50 $27 $29 $0.25 Z 0.90 $35 $38 $1.00     Refer to Exhibit 7.2. What are the expected (required) rates of return for the three stocks (in the order X, Y, Z)?  You can use the spreadsheet to solve the question: Exam 2 Spreadsheet.xlsx

In 2018, Montpelier Inc. issued a $100 par value preferred stock that pays a 9 percent annual dividend. Due to changes in the overall economy and in the company’s financial condition, investors are now requiring a 10 percent return. What price would you be willing to pay for a share of the preferred if you receive your first dividend one year from now?  You can use the spreadsheet to solve the question: Exam 2 Spreadsheet.xlsx

A normally aspirated automobile engine loses about ________ power per 1,000 feet of altitude.

How could a technician pinpoint a noise made by a defective rod bearing?

What engine part converts the up and down motion of the pistons to rotary motion?

If a digital meter face shows 0.93 when set to read kΩ, the reading means ________.

Overfilling the fuel tank can damage which component?

A TP sensor signal voltage is being observed using a digital storage oscilloscope. The pattern on the scope occasionally rises to the source voltage level. What does this indicate?

One horsepower is how many watts?

A cylinder contribution test is performed using a ____________.