Q19) Given the following information, determine the risk- free rate. Cost of equity = 12% Beta = 1.50 Market risk premium = 3% A) 8.0% B) 7.5% C) 7.0% D) 6.5% Q20) Alpha's beta is 1.06, the present T-bond rate is 6%, and the return on the S&P 500 is 15.25%. What is Alpha's cost of common equity using the CAPM approach? A) 21.25% B) 15.81% C) 9.25% D) 6.32% $2.05 per share, and the firm is expected to Q21) Paramount, Inc. just paid a dividend of , experience constant growth of 12.50% over the foreseeable future. The common stock is currently selling for $65.90 per share. What is Paramount's cost of equity using the Dividend Growth Model approach? A) 12.50% B) 17.90% C) 16.00% D) 14.55%