Question: NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) Zacher Co.'s stock has a beta of 1.08, the risk-free rate is 4.25%, and the market

NEED ANSWER ASAP / ANSWER NEVER USED BEFORE

a.)

Zacher Co.'s stock has a beta of 1.08, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

Select the correct answer.

a. 9.39%
b. 9.59%
c. 10.19%
d. 9.79%

e. 9.99%

b.)

Porter Plumbing's stock had a required return of 10.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)

Select the correct answer.

a. 12.96%
b. 12.66%
c. 12.76%
d. 12.86%

e. 13.06%

c.)

Stock A's stock has a beta of 1.30, and its required return is 12.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)

Select the correct answer.

a. 9.40%
b. 9.43%
c. 9.52%
d. 9.46%
e. 9.49%

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