$3$Assume the expected market risk premium is $10\%$ and the risk$-$free rate is $5\%.$

a$.$ ZPL stock is now selling for $$68$ per share. It will pay a dividend of $$3$ per share at the end of the year. The expected price for ZPL at the end of the year is $$77\mathrm{.}24.$ What is its beta? $(3$ marks$)$

b$.$ Kelvin is buying a stock with an expected perpetual dividend of $$300$ but is unsure of its risk. If Kelvin thinks the beta of the stock is $0\mathrm{.}8,$ when the beta is really $1\mathrm{.}3,$ how much more will he offer for the stock t