Ford Motor Company has a beta of 2.750 Compute the required rate of return on Ford's stock if the risk-free rate of return is 3% and the return on the market portfolio such as S&P 500 index is 8%. Show all computations. (5 pts) in F T: BID = = % to search In the above question, how much is the risk-premium on the stock? How much is the risk premium on the market portfolio? (4 pts) 1 in FTB Do = = = % % Village Pharma has a bond in the market that has 7 years to mature. It offers coupon interest at 5.50% annually and has a face or maturity value of $1,000. Compute the value of this bond today if the appropriate required rate of return on the bond is 8%. Show all computations. (7 pts) i F TBI EE % SS GenTech is a biomedical company whose common stock earnings and dividends per share currently are $3.75 and $1.80 respectively. Dividend has been growing at a rate of 10% per year and is expected to do so in the foreseeable future. As an emerging biotech company, investors perceive it to be more risky and hence require 14% return on its common stock. Compute the price (or value) of the company's common stock. Show all computations. (6 pts) 1 i - - T- BIO EE % S A four-year project under consideration has the following expected cash flows. If the required rate of return on the cash flows is 12%, compute the NPV of the project. Show all computations. Should the project be accepted? Why? (8 pts) Year Cash flow 0 - 100,000 $50,000 $50,000 3 $50,000 4 $50,000 to search