1. Gordon Constant Growth Model US Steel (NYSE: X) pays $0.04 dividend per year You expect it to grow at 10.5% per year Discount rate 12% Using the formula from Chapter 11, compute the value of US Steel's stock using the Gordon Constant Growth Model 2. Capital Asset Pricing Model (CAPM) Canada Goose (NYSE: GOOS) beta is 2.95 Expected return on market portfolio is 12% Risk-free rate is 0.082% Using the CAPM from Ch 11, compute the expected return on GOOS stock 3. Holding Period Return AAPL closing price on 3/25/19: $188.74 AAPL closing price on 3/25/18: 166.48 Dividends paid: 3/25/18 to 3/25/19: $2.92 Compute AAPL's holding period return from 3/25/18 to 3/25/19 using formula from Ch 11 4. Compute the Sharpe Index for AAPL Use Holding Period Return from last Exercise Standard deviation of returns = 1.32% (Over past 12 months) Risk free rate=2.5% Use formula for Sharpe Index from Chapter 11 5. Compute Treynor Index for AAPL Use holding period return from #3 Use risk-free rate from #4 Beta=0.99 Use formula for Treynor Index from Chapter 11