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1. currently, a treasury bill is paying 1.5% and the inflationary risk premium is 3%. Other risk premiums total 2%. What should the current risk-free

1. currently, a treasury bill is paying 1.5% and the inflationary risk premium is 3%. Other risk premiums total 2%. What should the current risk-free rate be?

2. Company has reported that its net income for 2012 was $1,276,351. The firm has 420,000 shares outstanding and a P-E ratio of 11.2 times. What is the firm's price?

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