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1) Oscorp Industries uses both equity and debt financing options for its investments. Oscorp Industries issues stocks for equity financing a) Oscorp stock has a beta of 1.2. If the market index return is 9% and return on 3-month t-bills is 3%, what is the expected return on Oscorp stock according to Capital Asset Pricing Model? [2 pts] b) Oscorp has announced that they will pay $4 dividend per share in year 1 and $5 in year 2. They also announced that the dividend will grow at a constant rate thereafter (year 3 onwards) at 3% rate. Using the expected return you calculated in part (a), find the value (price) of each Oscorp stock today. [5 pts]