Please give detailed working for the following problems.
Problem 1. Heks stock has a beta of 1.50, its required return is 14% and the risk -free rate is 5.00% what is the required rate of return of the stock market (hint first find the market risk premium)
Problem 2. The company last dividend was $1.00. its dividend growth rate is expected to constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. The company's required return (RS) is 12%
What is Company current stock price?
Problem 3. Assume that Beth Inc hired you as a consultant to help it estimate the cost of capital. You have been provided with the following data D0 = $1.20; P0 = $4000, and g=7% (constant) based on the DCF approach, what is Beth's cost of equity from retained earnings?