1)

You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $90.04 per share. You will also receive a dividend of $2.19 per share at the end of the next year. If your required return on this stock is 13.02 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?

Round the answer to two decimal places.

2)

You hold a portfolio with the following securities:

Security. Percent of portfolio. Beta

Stock A 45% 1.88

Stock B 10% 1.06

Stock C Please calculate it 1.19

Calculate the beta portfolio.

Round the answers to two decimal places.

3)

Genetic Insights Co. purchases an asset for $16,454. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,736.

Calculate book value of an asset.Round the answer to two decimals.