2

The risk free rate of return is 0.9 thand the expected return on the market portfolo is 7.7\%. Oklahoma Dlco has a bela of 1.74 and a standard devisoon of returns of 255 . Oico's. marginal tax rate is 30\$s. Analynts expect Oilco's net inceme to grow by 64 per year in the foreseeable future. Flotation costs of issuing new comman stock are 3 3h. Uysing the capital