Elcan Equipment has a beta of 1.5 and an expected dividend growth rate of 11.00%...

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Finance

  1. Elcan Equipment has a beta of 1.5 and an expected dividend growth rate of 11.00% per year. The T-bond rate is 2.32%. Investors expect the average annual future return on the market to be 10.70%. Using the capital asset pricing model, what is the firm's required rate of return?
  2. Owen holds the following portfolio: Stock Investment ($) Expected Return (%)
  3. A 250,000 13

    B 350,000 8

    C 300,000 15

    Total 900,000

    Calculate the portfolio's expected return.

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