problem1: Apex Roofing's stock has a beta of 1.50, its required is 14 percent, and the risk free rate is 5 percent. Determine the required rate of return on the stock market? [Suggestion: 1st find the market risk premium.]

[A] 11.50%

[B] 12.00%

[C] 12.50%

[D] 10.50%

[E] 11.00%

problem3: The Connors firm's last dividend was $1. Its dividend growth rate is expected to be constant at 15 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. Connors' required return (rs) is 12%. Determine Connors' current stock price?

[A] $58.15

[B] $60.07

[C] $62.87

[D] $54.91

[E] $56.82