Part A:

ABC has a beta of 1.92. The expected return for the S&P 500 stock index is 11.1 percent and U.S. Treasuries are expected to yield 4.7 percent. Based on the Capital Asset Pricing Model (CAPM), what is ABC's expected rate of return? (show your answer in decimal form to four places)

Part B:

ABC purchases $311,000 worth of goods from its supplier each year on terms of 1/10, net 30 and currently does not take the discount. If ABC decided to raise enough capital to pay down accounts payable enough to take the discount, how much would they need to raise?

Part C:

In its most recent financial statements, ABC reported 84,000 of net income and 283,000 of retained earnings. The retained earnings at the end of the previous year were 254,000. How much in dividends was paid to shareholders during the year?