Question: please help solve for both parts! [Questions 15-16] Consider a stock of which beta is 1.5 . The risk-free rate is 2%, and the market

please help solve for both parts!

[Questions 15-16] Consider a stock of which beta is 1.5 . The risk-free rate is 2%, and the market risk premium is 6%. According to the CAPM, what is the expected return on the stock? 7% 8% 9% 11% [Questions 1516 ] The stock is expected to pay a dividend of $0.8 per share in year 1. Since then, dividends are expected to grow at 6% every year forever. What is the stock price? $16.0 per share $26.7 per share $40.0 per share $80.0 per share

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