1. The current risk-free rate of interest is 2% and the expected return on the market is 5%.
   1. Calculate the cost of equity (required rate of return) for a stock with a Beta = 1.28.
   2. Using EXCELs Data Table feature create a two-way data table to determine the cost of equity by varying both the expected market return and the risk-free rate of interest. Use expected market return values of 8% through 14% in increments of 2% and risk-free interest rate values of 2% through 8% in increments of 2%.
   3. Using EXCELs Text Box Feature explain the impact of changing the expected market return and the risk-free rate of interest on the stocks cost of equity.