Finance for managers - MGT 325 (Solution guide)

Problem 1: Calculate the required rate of return on a ‘no growth’ stock with the following characteristics: (a) Dividend: $4.50 and (b) Price: $35.25.
Problem 2: Calculate the required rate of return on a ‘constant growth’ stock with the following characteristics: (a) Dividend: $4.50, (b) Price: $35.25, and (c) Growth: 10%.
Problem 3: Calculate the required rate of return on a ‘non-constant growth’ stock with the following characteristics: (a) Dividend: $4.50, (b) Price: $35.25, (c) Non-Constant Growth: 25%, and Constant Growth: 10%. 
Problem 4: Using the Capital Asset Pricing Model (CAPM) calculate the expected rate of return on Security XYZ given the following information: (a) Return on the Risk Free Asset: 3%, (b) Return on the Market Proxy: 10%, and (c) Company XYZ’s Beta: 1.23.
Problem 5: Using the Capital Asset Pricing Model (CAPM) calculate the beta for Security XYZ given the following information: (a) Return on the Risk Free Asset: 3%, (b) Return on the Market Proxy: 8%, and The Expected Rate of Return on Company XYZ’s Stock: 7%.