1. You are given the following information for company X and the financial markets. B of stock X = 1.4 recent dividend = $2.00 recent earnings = $3.00 constant growth rate = 8% projected stock market return = 14% yield on a 10-year treasury = 6.46% = frf (b) Using two alternative perspectives (i.e. methods of calculation), calculate what the stock price will be at the beginning of next year. Confirm that the rate of return is equal to the dividend yield plus the capital gains yield