What is the expected rate of return on a stock that has a beta of 1.48 if the market risk premium is 8.0 percent and the risk-free rate is 3.3 percent?

14.21 percent

15.14 percent

11.13 percent

13.28 percent

You own a $38,000 portfolio that is invested in a risk-free security and Stock A. The beta of Stock A is 2.77 and the portfolio beta is 1.28. What is the amount of the investment in Stock A?

$14,920

$17,560

$18,380

$20,120

Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend by 11.0 percent annually. The stock has a market price of $13.65 and a beta of 2.8. The market risk premium is 8.56 percent and the risk-free rate is 4.90 percent. What is the cost of equity?

31.31 percent

30.27 percent

30.92 percent

29.84 percent

The 8.50 percent preferred stock of Ajax Unlimited is selling for $92.30 a share. What is the cost of preferred stock if the risk-free rate is 3.95 percent?

12.40 percent

13.01 percent

8.27 percent

9.21 percent

Marvin