P=D1/(r-g) = Do (1+g)/(r-g) E(ri) = Rf + Bi [E(Rm) - Rf] Bo = PMT (1-(1+r)^-t))/r+FV/(1+r)^t Using the formulas above, calculate the following 1) APPL currently pays an annual dividend of $9.00 per share & their required rate of return is 9 percent. It currently has a growth rate of 4 percent. Using the DDM, what is the current price of APPL? 2) ABC Inc. has a beta of 1.3, if the risk free rate is 2.5%, and the market rate of return is 9.5%, using the CAPM, what is the expected rate of return for ABC Inc.? Also, is this considered a defensive or an aggressive stock? 3) What is the current price of a 25-year bond making semi-annual coupon payments that has a face value of $1,000, a coupon rate of 5%, and current interest rates are 3%. Also, does the bond sell at a discount, premium, or at face value