1. Calculate the cost of common equity. Assume that the expected return on a market portfolio is 15 ?%, the? company's beta is 0.78 and the? risk-free rate is 6 ?%. What is the cost of common? equity?
2. Dr. Will has written a new song. She will receive $30,000 for the next 11 years as a payment. Calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 14 percent? b. Should she be willing to sell out her future rights now for $167,000? Round your final answer to 2 decimal places.