Name Type: A 1. Suppose that the US capital markets are segmented with the rest of the world and that the US beta measure of Dell stock is 1.2 and the corresponding world beta measure is 0.7, that is, BS 1.2 and 0.7, respectively. If we assume that the risk-free rate is 4 percent, the expected return on the US market portfolio is 10 percent, and the expected return on the world market portfolio is 12 percent, that is, R- 4%. Rus = 10%, and Rw = 12%, the expected return on Dell stock can be computed as 2. Continuing from the previous question, Dell is financing with a total marloet value of 120 billion dollars and a debt value of 90 billion dollars: the pre-tax cost of this debt is 7% per annum. If the current corporate tax rate in the United States is 20%. Dell's weighted average cost of capital can be computed as