Question: Please keep it very short and show the maths Question 7 (9 points) Suppose the risk-free rate is 1%, the market return is 12%, and

Please keep it very short and show the maths

Please keep it very short and show the mathsPlease keep it very short and show the mathsPlease keep it very short and show the maths
Question 7 (9 points) Suppose the risk-free rate is 1%, the market return is 12%, and the beta of Stock I is 1.2. If the risk free rate jumps to 2% and all else remains equal, including the market risk premium, what will happen to the security market line? Describe the line's slope and how the security market line changes in terms of the intercept and slope.Question 8 (10 points) ABC Corporation's free cash flow, as defined by the textbook, during the past year was $40 million, and its free cash flow is expected to grow at a constant rate of 3.25% in the future. The weighted average cost of capital is 11.5%, the number of common shares outstanding is 5 million, and the company has $20 million in debt. What is an estimate of the firm's common stock price? A/ Question 9 (10 points)Question 9 [10 points) Suppose you do some investing research and gather the following data: "' 39year Tbond rate is 5% "' Tbill rate is 2% "' The stock market earned 15% over the last 5 years and stock analysts according to the Wall Street Journal expect the market to return 1???) next year. *Stock XYZ has a required rate of return of 20.35%. 'What must be XYZ'S stock's beta

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