Please answer all questions:

*Stock A has a beta of 1.2 and an expected return of 10.3. Stock B has a beta of 0.8 and an expected return of 8.2. If these stocks are priced correctly according to the CAPM, what is the equity premium? Give your answer in percentage to the nearest basis point. A comparable firm (i.e., same industry and similar operations as our firm) has an equity beta of 0.8 and a debt-tovalue ratio of 0.1. The debt of the comparable firm is risk-free. Our firm has a debt-to-value ratio of 0.2. Assuming both firms should have the same asset beta, and that our debt is also risk-free, what is a good estimate of the required return on our equity? The risk free rate is 3.7% and the equity premium is 4.9%. Give your answer in percentage to the closest basis point. Assume the CAPM holds. The T-bill YTM is 2.3%. The T-bond YTM is 6.7%. The expected rate of return on the market is 8.2%. What is the appropriate cost of capital for a long-term project that has a beta of 0.9 ? Give your answer in percentage to the closest 0.1 percent. Thayer Farms stock has a beta of 1.38 . The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the market risk premium is 9.03 percent. What is the expected rate of return on this stock? 19.01 percent 18.35 percent 16.33 percent 13.73 percent 10.23 percent