please right solutions clearly

Question #1 (10 points) Share A has a beta of 2, share B has a beta of 0.5 and C a beta of 1. The riskfree rate of interest is 7% and the risk premium for the market index has been 5 %. Calculate the expected returns on A, B and C. Question #2 (10 points) Sutton, Inc., is evaluating its cost of capital under alternative financing arrangements. It expects to be able to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.00 per share dividend at $30 a share. The common stock is currently selling for $25 a share. It expects to pay a dividend of $1.50 per share next year. Sutton expects dividends to grow at a rate of 5% per year and Sutton's marginal tax rate is 40%. Consider the following financial arrangement: Debt= 45% ,Preferred Stock=25%, Common Stock=30% calculate the cost of capital for Sutton, Inc