27) A stock is priced today at $12.77. Analysts have a consensus view that the stock will be valued at $15.79 next year. The stock will not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.04. The risk free rate in the economy is 5.00%, while the market risk premium is 6.00%.

If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY?

21) At the beginning of 2012, Google (GOOG) was priced at $580.58. Google's beta is 1.15 and the risk free rate at the time was 0.25% with a market portfolio risk premium of 6%. Google's price at the beginning of 2013 was $754.57. Use this information to answer the question.

a)What was the actual return for Google in 2012?

b)What was the required return for Google in 2012?

18) A stock has a Beta of 1.36. The current risk free rate in the economy is 2.26%, while the market portfolio risk premium is 6%. Find the cost of equity for this stock.

19) An investor purchased Google stock this morning for $898.00. Google stock has a beta of 1.29. The current risk free rate is 3.00%, while the historical market portfolio risk premium is 6%. If CAPM holds for Google, what should Google sell for in one year? (Assume that Google will not pay a dividend in the coming year)