1. If the risk-free rate is 6.9%, the market risk premium is 7.0%, and the expected return on Security J is 29.4%, what is the beta for Security J? (Calculate your answer to two decimal places.)

Title: Preferred stock (solve for value)

2. Timeless Corporation issued preferred stock with a par value of $700. The stock promised to pay an annual dividend equal to 19.0% of the par value. If the appropriate discount rate for this stock is 10.0%, what is the value of the stock?

Title: Supernormal growth (three years g(s))

3. Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $5.60. You believe that dividends will grow at a rate of 24.0% per year for three years, and then at a rate of 10.0% per year thereafter. You expect that the stock will sell for $177.59 in three years. You expect an annual rate of return of 18.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

Title: Constant Growth Model (new div - CAPM)

4. You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $7.60 and that dividends will grow at a rate of 6.0% per year thereafter. The firm's beta is 0.93, the risk-free rate is 6.1%, and the market return is 13.6%. What is the most you should pay for the stock now?