Question 8 (5.55 points) Analysts give Lenovo Group an equity beta of 1.30. The risk-free rate is 1.5%. An analyst calculates an equity cost of capital for Lenovo Group of 13.50% using the capital asset pricing model. What market risk premium is the analyst assuming? O 12.00% O 10.38% 10.73% O9.23% Question 9 (5.55 points) Pandora trading with a total market value of $250 million reported earnings of $20 million and book value of $150 million. Pandora is used as a comparable to price an IPO firm with earnings per share of $5.00 and book value per share of $50 per share. Neither firm pays dividends. What per-share IPO price does the comparable firm imply? $81.28 O $55.87 O $60.00 O $72.92