American Eagle's stock has a beta of 1.26, its required return is 11.70%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.) 2. Marcos expected year-end dividend is $1.60, its required return is 12%, its dividend yield is 5%, and its growth rate is expected to be constant in the future. What is Marcos Profit's expected stock price in 8 years? 3