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(answered) – 1) Risk & Return and the CAPM. Based on the following

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(answered) – 1) Risk & Return and the CAPM. Based on the followingDescriptionSolution downloadThe Question1)?Risk & Return and the CAPM.?Based on the following information, calculate the required return based on the CAPM:Risk Free Rate = 3.75%Market Return =10%Beta = 1.322)Perpetuity problem.?What is the value of a perpetuity with an annual payment of $70 and a discount rate of 5%?3)Calculate the sustainable growth based on the following information:Earnings after taxes = $23,000Equity = $110,000d=48.7%4)Valuation ? options.The following information refers to a six-month call option on the stock of XYZ, Inc.Price of the underlying stock:???????????????? $100Strike price of the three-month call:?????? $92Market price of the option:???????????????????? $181) Risk & Return and the CAPM.Based on the following information, calculate the required return based on the CAPM:Risk Free Rate = 3.75%Market Return =10%Beta = 1.32Required Return Ks =…