Hello-

I need help with the following practice problems:

1.) William Robert buys stock A worth $25, and stock B worth $32. He also SELLS SHORT both stock Z at $28, and stock Y at $51. If after one week all four stocks are priced at $31, what is his net gain or loss if he closes out all positions at $31?

2.) The Jacobzee Company's last dividend was $2.75.Its dividend growth rate is expected to be constant at 20% for 2 years, after which dividends are expected to grow at a rate of 6% forever.Its required return (r_s) is 12%.What is the best estimate of the stock price in year 2 (P₂)?

3.) Nor-Cal Surf recently paid a $2.80 annual dividend. This dividend increases at an average rate of 3.8% per year. The stock is currently selling for $26.91 a share. If the average market return is 9.50%, and the T-bill rate is 4.00%, what is the Nor-Cals current value of beta?

Thanks.