1. Ran Company wants to determine its cost of common stock equity using the CAPM. The company's investment advisors indicate that the firm's beta is equals to 1.3;the risk-free rate is 6%; and the market return is 10%.(Do not round off between computations. Round off the final answer to two decimal places. Example of writing your answer 2.58%)

2. The company has just issued preferred stock. The stock has 8 percent annual dividend and a 400 par value and was sold at 350 per share. In addition, floatation cost of 25 per share must be paid. Calculate the Cost of Preferred Stock.(Round off to two decimal places between computations. Round off the final answer to two decimal places. Example of writing your answer 2.58%)

3. Suppose the market premium is 12%, market volatility is 20% and the risk-free rate is 6%. Suppose a security has a beta of 0.8. Using the CAPM, what is its expected return?(Round off the final answer to one decimal place. Example of writing your answer 2.5%)