1q.Assume that the CAPM holds and that the risk factor (), which measures the relation of market risk to equity risk, equals 1.43 for a target company. The market-determined cost of equity capital for the company is 18.00%. You also know that the risk-free interest rate is 7.50%. What is the implied return of the market portfolio

2q .According to the definition of the Capital Asset Pricing Model (CAPM), what is the systematic risk () of the market portfolio?

3q. Assume that the CAPM holds and you want to perform a discounted cash flow (DCF) analysis to a company with the weighted average cost of capital (WACC) method. The beta factor () of the company's equity is 1.35, the market risk premium is at 4.00 %, and the risk-free interest rate is at 5.50%. The company's cost of debt is 4.00 %. Moreover, assume a debt ratio of 24.50% and a marginal tax rate of 25.00%.

What is the weighted average cost of capital (WACC) for the company?