The earnings per share of Ouno Ltd are expected to be $1.25 next year and the company is expected to maintain a constant payout ratio of 40% forever. The companys earnings are expected to grow at a constant rate of 8% p.a. forever. The standard deviation of the stocks returns is 40% and its covariance with the market index is 0.05. The expected market risk premium is 10% and the standard deviation of the market index is 25%. At present, the government bill rate is 5%.

Q1:Ouno Ltds beta is closest to:?

Q2:In equilibrium, Ouno Ltds stock price should be closest to:?