1.Gabriel Industries stock has a beta of 1.41. The company just paid a dividend of $.91, and the dividends are expected to grow at 5.1 percent. The expected return on the market is 11.6 percent, and Treasury bills are yielding 5.1 percent. The most recent stock price is $85.00.

a.Calculate the cost of equity using the dividend growth model method.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)b.Calculate the cost of equity using the SML method.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)

2.Gnomes R Us is considering a new project. The company has a debt-equity ratio of .79. The company's cost of equity is 14.5 percent, and the aftertax cost of debt is 7.8 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +4 percent.

a.What is the company's WACC?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)b.What discount rate should the firm use for the project?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

3.Over a particular period, an asset had an average return of5.4 percent and a standard deviation of8.2 percent.What range of returns would you expect to see 68 percent of the time for this asset?(A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

What about 95 percent of the time?(A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)