Equity 1.MarcusCorp.hasabook rate of return (ROE) of 10%. It reinvests one-thirdits earnings and pays out the rest as cash dividends. The cost of capital is 10%.Given this ROE and dividend payout ratio, what is the growth rate of Marcus Corp.?

2.The current risk free interest rate is 2%. The expected return on the market portfolio is 12%. What is the expected return of a stock with a beta value of 1.5?

WACCThe market value of Charcoal Corporation's common stock is $20 million, and the market value of its risk-free debt is $5 million. The beta of the company's common stock is 1.25, and the market risk premium is 8 percent. If the Treasury bill rate is 5 percentand tax rate is 20%, what is the company's cost of capital?