a. Northern Corporation's stock has a beta of 1.4. Short term government securities yield 5% and the market portfolio offers an expected return of 14%. Find the required return on Northern's stock. (2 marks) b. Borethe Ltd stock currently sells for $20. It is expected to pay a dividend of $1 a year from now and sell for $23 at year-end. Find the expected return on the stock. (2 marks) c. Suppose the price for the stock is correct at $20 and 30 000 shares are outstanding. Borethe also has a $20 000 debt with a yield to maturity of 9%. The firm is in the 35% marginal tax brackets. Find the proportions of debt and equity and the weighted average cost of capital (WACC). (6 marks)