1. You purchase equipment for $10,000. You expect to sell the equipment for $800 When you are done with it in 5 years. The company's marginal tax rate is 30%. What is the depreciation expense for each year and the after-tax salvage in year 5 if straight-line method is adopted? 2. Supposed that the company pay dividend of $1.50 per share this year. The dividend growth rate for the first three year is 15%. There will be a steady growth in dividends of 8% afterward. The required rate of return is 10%. What is the current price of the stock? 4. Suppose you company has an equity beta of 1.15, and the current risk-free rate is 5.2%. If the expected market risk premium is 7.9%, what is your cost of equity capital? How does the beta value affect the cost of equity