October 17, 2022 Question 1: A financial analyst gives Oracle Corp., the enterprise software and database management firm, a CAPM (Capital Asset Pricing Model) equity beta of 1.20. The risk-free rate is 4%. The cost of equity under CAPM is calculated using the formula as follows: Cost of Equity =E(Rl)=Rt+ beta (E(Rl)Rt) where, Rf : risk-free rate, E(Ri)Rt: Market risk premium betas: (equity) beta of individual firm if Required: Prepare a table with the cost of capital (cost of equity) that you would calculate for the equity with the following estimates of the market risk premium. (12 points) 4.5% 6.0% 6.5% 7.0% Question 2: On November 1, 2021, Mr. Daniel Kim, an individual stock investor, pays attention