1. According to CAPM estimates, what is the cost of equity for a firm with a beta of 1.5 when the risk-free interest rate is 6% and the expected return on the market portfolio is 15%?
2. A firm can increase its sustainable rate of growth by decreasing its:
A. Equity mulitplier
B. Target debt-equity ratio
C. Dividends
D. Profit margin
E. Total asset turnover