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*Figure 1** GIVEN: Beedro Poorboy, Inc. Year 2000 2001 2002 2003 2004 Dividends ($) 3.00 3.18 3.37 3.57 3.797 The Market rate of return is

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*Figure 1** GIVEN: Beedro Poorboy, Inc. Year 2000 2001 2002 2003 2004 Dividends ($) 3.00 3.18 3.37 3.57 3.797 The Market rate of return is 16%, the T-Bill rate is 6%. Beedro's Beta is 1.9. Using the CAPM and Gordon model, calculate the following: g D1 = rs= Po= What is the market risk premium? Draw the SML. *Figure 1** GIVEN: Beedro Poorboy, Inc. Year 2000 2001 2002 2003 2004 Dividends ($) 3.00 3.18 3.37 3.57 3.797 The Market rate of return is 16%, the T-Bill rate is 6%. Beedro's Beta is 1.9. Using the CAPM and Gordon model, calculate the following: g D1 = rs= Po= What is the market risk premium? Draw the SML

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