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Q14) An analyst gathered the following information for a stock and market parameters: stock beta = 1.410; expected return on the Market = 10.60%; expected

Q14) An analyst gathered the following information for a stock and market parameters: stock beta = 1.410; expected return on the Market = 10.60%; expected return on T-bills = 4.00%; current stock Price = $7.76; expected stock price in one year = $13.52; expected dividend payment next year = $2.12. Calculate the
a) Required return for this stock (1.25 points):
b) Expected return for this stock (1.25 points):

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