36. Stock A's stock has a beta of 1.00, and its required return is 11.21%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock based on the Capital Asset Pricing Model? Do not round your intermediate calculations. a. b. C. d. e. 9.33% 9.52% 10.66% 11.33% 8.57% 37. Kollo Enterprises has a beta of 0.70, the real risk-free rate is 2.00%. investors expect a 3.00% future inflation rate, and the nominal market risk premium is 7.70%, what is Kollo's required rate of return based on the Capital Asset Pricing Model? Do not round your intermediate calculations. a. b. c. d. 7.96% 7.30% 6.47% 6.96% 10.39% 38. Which of the following statements is CORRECT? (Note: The company valuation model refers to our Free Cash Flow to the Firm approach. The Dividend Discount Model is the same type of model, applied directly to expected future dividends rather than to after-tax free cash flow.) a. The constant growth formula is best used to evaluate start-up companies that do not have a stable history of growth. b. The book's "company valuation model" -defined as Value CL). can be used (WACC-g) to value firms whose cash flows are expected to decrease at a constant rate, i.e., to grow at a negative rate (where g