1	B	C	D
2	You have collected the following information about the market and a stock of interest:
3	US treasury bonds are yielding	1.80%
4	Rate of return on a market portfolio of like stocks is	11.40%
5	The stock of interest has a beta of	2.21
6	The market has a beta of	1.00
7	The current dividend is	$3.98
8	The firm registers a constant growth rate of	6.70%
9	What is the fair market value of the stock based upon DDM and CAPM?

c.

Fair market value (Po) = $23.93

a.

Fair market value (Po) = $20.93

b.

Fair market value (Po) = $29.93

d.

Fair market value (Po) = $27.93