Skyhawk Inc. paid a dividend of $1 per share today on its class A shares. For the next three years it is expected to pay a dividend of $2.00 per share per year. At the end of the three year period it will not pay any more dividends. Skyhawk Inc. paid a dividend of $10 per share today on its class B shares. For the next three years it is expected to pay a dividend of $10.00 per share per year. At the end of the three year period the dividend is expected to grow by 10% per year indefinitely. Skyhawk's class C stock is selling today for $40 per share. In one year, they're expected to pay a dividend of $1.40, and the market price after the dividend is expected to be $45 per share. What is the expected return on this investment?

Skyhawk's class D stock is selling today at $125 per share. It is preferred stock that pays a constant annual dividend of $20 per share. 30 day Treasury bills yield 1 percent and Skyhawk's overall beta is 1.5.

1. What is the market's required rate of return for Skyhawk next year?
2. What is the overall market's expected return next year?
3. What is the market's required rate of return for Skyhawk's class D stock next year?
4. What is the current value of Skyhawk's class A stock?
5. What is the current value of Skyhawk's class B stock?
6. What is Skyhawk's current cost of equity?