1. How would you determine the appropriate required rate of return for a stock held inside a portfolio? Include a disscussion of the CAPM.
2. How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 year from now and your deposit will earn 4% interest.
3. A 15-year lease with annual rental payments (due at the end of each year). If the first year rent is $45 per square foot and the rent will grow at the rate of 4% per year. The discount rate is 8%, what is the present value of this lease?