1. Porter Inc's stock has an expected return of 10.75%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

2. Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.50% per year. The required rate of return on the stock, r, is 11.50%. What is the stock's expected price 5 years from now?

Thank you for the opportunity to help you with your question!

According to CAPM we know that

Re = Rf + Beta *Rm ; 10.75 = 5 + 1.25 * Rm

solving we get , Rm = 5.75/1.25 = 4.6 % (Answer)

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Post it again question number 2 (Its a bit long question ) I can solve it for $ 2 method : Find Do : using Stock price = Do/(r-g) then find 5 dividend using growth factor 4.5% and then use formula Sum for 5 years (Using Goroden formula ) (Invite me I can solve it ) Please find the solution enclosed here with. In case of any doubt please feel free to ask … If you need help in any assignment of math/ science … any online exam / discussion, Please contact for quick & quality services.

Thanks, I did the second by myself. And could you help me write an assignment for my Financial management class? I can post it to a paid question and ask you directly