1. Expected return on Verizon stock is 13.49%. The risk free rate is 3.52 %. Inflation rate is 2.62% and Verizon stock has a beta of 0.65. What is the premium (CAPM)
2. Dana owns a house that is worth $58000 and make expected cash flows forever. Cost of capital is 7.9%, next annual cash is expected in 1 yr and cash flows grow annually by 2.6% what is cash flow produced in 5yrs expected to be
3. As you consider scenario analyses, how do you ascertain the types of situations you would want to evaluate?