1. Mulherin's stock has a beta of 1.44, its required return is 9.90%, and the risk-free rate is 2.35%. What is the required rate of return on the market?
2. Buffon Company's noncallable bonds currently sell for $1,080. They have a 15-year maturity, an annual coupon rate of 8.5, and a par value of $1,000. What is their yield to maturity?
3. The Salerno Company’s last dividend was $1.70. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. The company’s beta is 1.50, the market retrun is 9.00%, and the risk-free rate is 3.00%. What is the company’s current stock price?