1)Porter Inc's stock has an expected return of 10.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 2.00%, what is the market risk premium? Do not round your intermediate calculations.

2)A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 13.7%, then what is the stock price?

3)You will accept a project that has a negative NPV. TRUE or FALSE

4)A company's equity cost is 12% and has a beta of 1. The market risk premium is 8%. What is the risk-free rate?

5)If a project's IRR exceeds its WACC, it should be accepted as a general rule.