1) What rate of return should an investor expect for a stock that has a beta o

1) What rate of return should an investor expect for a stock that has a beta of 1.0 when the market is expected to yield 10% and Treasury
bills offer 2%?

2)A stock is expected to have a dividend of $10 in one year and $11 in two years and then grow its dividend at a
constant 10%/year forever. If the discount rate is 12% what should be the current stock price?

3) Calculate the average collection period for Dotte Inc. if its accounts receivables were $500 and $600 at the end of
each of the last two years and its revenue over the last year was $3000: