Nor-Cal Surf recently paid a quarterly $0.70 dividend. This dividend increases at an average rate of 18% per year. The stock is currently selling for $26.91 a share. If the average market return is 9.50%, and the T-bill rate is 4.00%, what is the Nor-Cal's current value of beta? A. 0459 B.0.722 C. 1.090 D. 1.616 E. 1927 10. Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct? A. If the average market return is up 1%, in equilibrium stock B's return is higher than stock A B. In equilibrium, a positive average market return will be greater than the expected return on Stock B C. In equilibrium, the expected return on Stock B will be greater than that on A D. In equilibrium, if the average market return is positive 0.75%, stock A's return is negative E. Stock B would be a less desirable addition to a portfolio than A 11. For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure. Cost of subscripts: r, - common stock: Tp preferred stock, - debt. A.1. >>> WACC. B.Tp WACC> C. WACC>>> D. Io>f> WACC> E. WACC >>>