Instructions The table below represents hypothetical data for Microsoft, Intel, and Dell. Assume that the risk$-$free rate of return in the economy is $3\mathrm{.}0\%$ and the market risk premium is $5\mathrm{.}0\%.$ REQUIRED:

a$.$ Using the CAPM, compute the required rate of return on equity capital for each firm.

b$.$ Project required income for Year$+1$ for each firm.

c$.$ Project residual income for Year$+1$ for each firm.