CALCULATE AND SHOW ALL WORK

Exhibit 7.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stock Beta Current Price Expected Price Expected Dividend X 0.8 $12.50 $13.10 $0.80 Y 1.1 $ 8.25 $9.76 $0.20 Z 2.1 $25.70 $30.04 $0.00 Refer to Exhibit 7.4. What are the expected returns for stocks X, Y, and Z for the next period based on the above prices and dividends? X Y Z O 11.2% 20.7% 16.9% O 12.3% 22.5% 22.3% 13.1% 24.3% 18.2% O 10.7% 17.5% 14.4% O 4.8% 18.3% 16.9%