9. What is the required rate of return for Terrific Pacific Underwater Divers if the stock has a beta of 2 risk-free rate of 2.4% and a market risk premium of 7%? 10. What is the holding period return for equipment that was purchased six years ago, has generated $8500 total revenue, cost $35,000 when new and can be resold for $32,000 15.77 11. The law firm of Nab-bem and Robb is considering selling stock. It has past dividends of: 2017 - $1.15, 2018- $1.27, 2019- $1.38, 2020 - $1.47. What should the stock sell for if the required rate of return i 12%? 12. Drs. Hack & Whack Plastic Surgeons is considering selling preferred stock. What would be the required rate of return if the stock sells for $2,500 and has an annual dividend of $1857 7.73% 22% 3% Answers Including Growth Rates (in random order): 6.55% 4.75% 7% 7.2% $1835.71 15.7% 7.2% 7.4% $53.33 9% $28.67 5% 4%