Asked this quesiton last week and the answer i guess is still wrong?

Problem 8.Using the capital asset pricing model (CAPM): A stock has a beta of 1.65, and the projected return on the market is 12.25 percent, with a risk-free rate of 4.75 percent. Calculate the projected return on this stock.

answer:

Risk Free Rate: 4.75%

Expected return on market: 12.25%

Beta: 1.65

Expected Return on the stock = 4.75%+(12.25%-4.75%)1.65=12.375%

Problem 9.Calculating cost of equity: The Denton Corporation's common stock has a beta of 1.45 and a risk-free rate of 5.75 percent. What is Denton's cost of equity if the projected return on the market is 13 percent?

Answer:

Risk Free Rate: 5.75%

Expected return on market: 13.00%

Beta: 1.45

Expected Return on the stock = 5.75%+(13.00%-5.75%)1.45=11.962%

Instructor's comments Both still incorrect. #8 forgot to add something, #9 review associative properties - what comes first in multiplation, addition problems...redo calculations.