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please explain and solve for 15,16,&17 15. A company has a beta of 2.75. If the market return is expected to be 13 percent and

please explain and solve for 15,16,&17 image text in transcribed
15. A company has a beta of 2.75. If the market return is expected to be 13 percent and the riskfree rate is 7.25 percent, what is the company's risk premium? a) 15.8 percent b) 5.75 percent c) 23.06 percent d) 1.00 percent 16. If a stock market bubble peaked at 87,500 , and two and a half years later it had fallen to 34,800 , what was the percentage decline? a) 10.31 percent b) 27.63 percent c) 52.70 percent d) 60.23 percent 17. A company's current stock price is $44.50 and it is likely to pay a $1.50 dividend next year. Since analysts estimate the company will have a 10 percent growth rate, what is its expected (or required) return? a) 4.14 percent b) 4.45 percent c) 10.00 percent d) 13.37 percent

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