Module 4 Worksheet—Chapters 6 & 7 Please complete the problems in Excel on this worksheet and upload...

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Module 4 Worksheet—Chapters 6 & 7
Please complete the problems in Excel on this worksheet andupload to the drop box for module 4 no later than Sunday, 11:55PM.Don’t round – use four decimal places until the final answer.
1. AA Corporation’s stock has a beta of 1.6. The risk-freerate is 2.5% and the expected return on the market is 14.5%. Whatis the required rate of return on AA’s stock?
3. Suppose you manage a $6 million fund that consists of fourstocks with the following investments:
Stock??Investment??Beta
A??$900,000??1.70
B??1,100,000??-0.70
C??1,500,000??1.15
D??2,500,000??0.85
If the market’s required rate of return is 12% and therisk-free rate is 3%, what is the fund’s required rate ofreturn?
4. Boehm Incorporated is expected to pay a $1.50 per sharedividend at the end of this year
(i.e. D1 = $1.50). The dividend is expected to grow at aconstant rate of 11% a year. The required rate of return on thestock, r is 15%. What is the estimated value per share of Boehm’sstock?

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Module 4 Worksheet—Chapters 6 & 7Please complete the problems in Excel on this worksheet andupload to the drop box for module 4 no later than Sunday, 11:55PM.Don’t round – use four decimal places until the final answer.1. AA Corporation’s stock has a beta of 1.6. The risk-freerate is 2.5% and the expected return on the market is 14.5%. Whatis the required rate of return on AA’s stock?3. Suppose you manage a $6 million fund that consists of fourstocks with the following investments:Stock??Investment??BetaA??$900,000??1.70B??1,100,000??-0.70C??1,500,000??1.15D??2,500,000??0.85If the market’s required rate of return is 12% and therisk-free rate is 3%, what is the fund’s required rate ofreturn?4. Boehm Incorporated is expected to pay a $1.50 per sharedividend at the end of this year(i.e. D1 = $1.50). The dividend is expected to grow at aconstant rate of 11% a year. The required rate of return on thestock, r is 15%. What is the estimated value per share of Boehm’sstock?