question no 8.

U. To ll Wbuild be her expected return if she quadrupled her inmvestment in Excesor Hair Growth, Inc., while leaving everything else the same? 8. Salt Lake City Services, Inc., provides maintenance services for commercial buildings. Currently, the beta on its common stock is 1.08. The risk-free rate is now 10 percent, and the expected return on the market portfolio is 15 percent. It is January 1, and the com- pany is expected to pay a $2 per share dividend at the end of the year, and the dividend is expected to grow at a compound annual rate of I11 percent for many years to come. Based on the CAPM and other assumptions you might make, what dollar value would you place on one share of this common stock? 9. The following common stocks are available for investment