Assume the risk-free rate of interest is 4%. You are provided the following information from the US stockmarket. The constant growth Dividend Discount Model applies to these 2 stocks:- (a) Calculate the expected return and ROE of stock X. What is the risk premium on stock X? (10 marks) (b) Calculate the dividends paid by Stock X and hence calculate the beginning book value for Stock X. (10 marks) (c) Calculate the plowback ratio and dividend yield of stock Y. (6 marks) (d) What is the present value of growth opportunities (PVGO) implied by stock Y's price? (10 marks) (e) Portfolio Z combines stocks X and Y such as to produce a portfolio return of 10%. What are the weights of X and Y that are needed to achieve such a portfolio assuming you wish to invest $10,000 in these 2 stocks? (6 marks) Assume the risk-free rate of interest is 4%. You are provided the following information from the US stockmarket. The constant growth Dividend Discount Model applies to these 2 stocks:- (a) Calculate the expected return and ROE of stock X. What is the risk premium on stock X? (10 marks) (b) Calculate the dividends paid by Stock X and hence calculate the beginning book value for Stock X. (10 marks) (c) Calculate the plowback ratio and dividend yield of stock Y. (6 marks) (d) What is the present value of growth opportunities (PVGO) implied by stock Y's price? (10 marks) (e) Portfolio Z combines stocks X and Y such as to produce a portfolio return of 10%. What are the weights of X and Y that are needed to achieve such a portfolio assuming you wish to invest $10,000 in these 2 stocks? (6 marks)