a) Southwest Airlines has a beta of 1.13, the S&P 500 return is 11% and the risk-free rate of return is 5.2%. What should the expected return be?

b) Texas Roadhouse’s beta is 0.27. If the T-bill rate is 5.5% and the company’s expected return is 13.5%, what is the S&P 500 return?

c) A stock has an expected return of 14%, a beta of 1.45 and a market return of 11.5%. What is the risk-free rate of return?

d) Chipotle Mexican Grill has a beta of 2.1 and an actual return of 20.51%. If the risk-free rate is 6% and the market risk premium is 8%, is the stock over-priced, under-priced or correctly priced?

e) Waste Management Company has 20,000,000 shares of common stock outstanding, its net income is $51,750,000, and its P/E is 8. What is the company's stock price? What is its dividend payout ratio if it paid $0.90 per share?