Riskfree rate = 0.016 Market rate = 0.078

t is the current year. In general, the EPS and dividend for t will be given.

1. Open Text has a beta of 0.95. What is its required return?

2. New York Community Bank has a beta of 0.95 and a fixed dividend of $0.68. What is its intrinsic value? If its currently trading at about $9.86 a share, is it over or under valued?

3. The Carlisle Companies has a beta of 1.00, an expected dividend of $2.10 next year, and an 3% growth rate. If its trading at $123.68, is it over or under valued?

4. Using the information below and the CD&E model, forecast Carlisles cash flows for t+1, t+2, and t+3 to determine whether Carlisle is over or under valued if its trading at $123.68. t t-1 t-2 t-3

	T	T-1	T-2	T-3
EPS	$9.05
DPO		.23	.22	.26
ROE		.17
BETA	1.95
P/E		18.7	18.7	17.2