QUESTION $1$

The expected return on the market is $11\mathrm{.}65$ percent, the inflation rate is $1\mathrm{.}15$ percent, and the risk$-$ free return is $4\mathrm{.}35$ percent. Refresher stock is currently priced at $$67\mathrm{.}26$ per share and is expected to pay its next annual dividend in $1$ year. Refresher$$s next dividend is expected to be $$2\mathrm{.}91$ per share and the stock is expected to be priced at $$73\mathrm{.}74$ in $1$ year. What is Refresher$$s beta? Round your answer to $2$ decimal places $($for example, $1\mathrm{.}23$ or $9\mathrm{.}87).$

$10$ points

QUESTION $2$

The expected return on the market is $15\mathrm{.}49\%,$ the risk$-$free rate is $3\mathrm{.}49\%,$ and the tax rate is $20\%.$ Semper Fun Sports has $750,000$ common shares outstanding that are priced at $$14\mathrm{.}00$ per share and have an expected return of $19\mathrm{.}11\%$ and an expected real return of $17\mathrm{.}80\%.$ Last year, Semper Fun Sports common stock had a return of $21\mathrm{.}81\%.$ The company also has $200,000$ shares of preferred stock outstanding that are priced at $$20\mathrm{.}50$ per share and have an expected return of $13\mathrm{.}82\%.$ Last year, Semper Fun Sports preferred stock had a return of $14\mathrm{.}99\%.$ Finally, the company has $15,000$ bonds outstanding with a coupon rate of $9\mathrm{.}87\%,$ yield$-$to$-$maturity of $7\mathrm{.}35\%,$ current yield of $9\mathrm{.}35\%,$ face value of $$1,000,$ and price of $$1,060.$ What is the weighted average cost of capital for Semper Fun Sports? Answer in decimal format, rounded to the nearest hundredth of a percent $($for example, $1\mathrm{.}23\%$ would be entered as $0\mathrm{.}0123).$