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Questions Moving to another question will save this response uestions 10 points SA Furry Friends firm is a company based in Dubai and manufactures toys

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Questions Moving to another question will save this response uestions 10 points SA Furry Friends firm is a company based in Dubai and manufactures toys for pets. To calculate the cost of equity of the business, the Finance manager collects the following information Beta of common stocks for similar businesses in the market is 0.95. The risk-free rate is 3% and the expected return on the stock market is 14% Required: a. Calculate market risk premium y2 marks) b. Calculate the company's cost of equity using the capital asset pricing model (CAPM). (4 marks) cidentify two disadvantages of CAPM. (4 marks) 14px TX GQ For the SALT 10 PC or ALT 10 Mad BIUS Paragraph Anal XX1 11 + LD S. FH 3 Ti (1

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