A share has a beta of 0.75, the risk-free rate of interest is 6.5% and the expected market return is 18%, according to the CAPM: a. What is the market-determined required return on the share? b. The share is expected to pay a dividend of $2.50 in 12 months' time and has an expected selling price at that time of $36.00. If the share is currently trading in the stock exchange at $34.00, is it overvalued or undervalued, according to the CAPM? Alibaba Brothers Ltd has the following capital structure and their costs: Equity S$360 mil (market value); Cost = 12% = = 8% Debt S$240 mil (market value); Cost Calculate the company's weighted average cost of capital.