ABC corporation has a beta of 2.The risk free rate is 9.9 precent and the expected return on the market portfolio is 13 percent .The company currently pays a dividend of $1 a share ,and investors expect it to experience a growth in dividends of 5 percent per annum.

a- What is the stock's required rate of return according to the CAPM?

b- What is the stock's present market prise per share ,assuming this required return ?

c- What is the stock's required rate of return according to CAPM if the market portfolio is 8%?

Explain the answer

d- What would happen to the required return and to market price per share if the beta were 3.80%?(assume that all else says the same)