CAPM Calculations A stock has a beta of 1.2 when the risk free rate is 2% and the expected return on the market is 11.5%. The stock's required rate of return is equal to

Multiple Choice

• 11.40%

• 13.90%

• 13.40%

• 14.70%

Stock in Country Road Industries has a beta of 1.19. The market risk premium is 9.5 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 6.5 percent annual rate indefinitely. If the stock sells for $33 per share, what is your best estimate of the company's cost of equity?

Multiple Choice

• 14.3%

• 12.31%

• 10.74%

• 13.31%

• 11.72%

Suppose a stock had an initial price of $58 per share, paid a dividend of $1.4 per share during the year, and had an ending share price of $73. Compute the percentage total return.

multiple choice:

• 28.28

• 22.47

• 29.69

• 36.21