1. ABC Corp. stocks beta is .50. If the market return is 16%, and the risk-free rate is 6%, what is the required rate of return on ABC stock?

11%

12%

13%

14%

2. The Taurus Companys last dividend was P3.00; its growth rate is 6 percent and the stock now sells for P36. New stock can be sold to net the firm P32.40 per share. What is the Taurus Companys cost of retained earnings?

14.83%

15.26%

15.81%

9.69%