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3. The stock of Oged Electric has a beta of 1.12. The market risk premium is 8.6 percent and the risk-free rate is 3.7 percent.

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3. The stock of Oged Electric has a beta of 1.12. The market risk premium is 8.6 percent and the risk-free rate is 3.7 percent. What is the expected retum on Oged Electric stock? A. 9.19 percent B. 9.63 percent C. 12.05 percent D. 1333 percent E. none of the above 4. ABC, Inc. will pay a $3 dividend next year and will increase their dividends by 5% each year thereafter. If the required rate of return on ABC stock is 10%, what should the stock price be today? A. $30.00 B. $33.33 C. $60.00 D. $63.00 E. none of the above

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