$(20$ of $21)$

Suppose you are considering buying a stock. The stock is currently trading for $$30.$ You expect the price in one year to be $$30\mathrm{.}70$ and it will pay a dividend of $$0\mathrm{.}25.$ You estimate the stock's beta at $-0\mathrm{.}2,$ the risk$-$free rate at $3\%,$ and the expected return on the market at $10\%.$ According to the CAPM, what is the maximum price you should be willing to pay for this stock? LO$3$

$$44\mathrm{.}33$

$$30\mathrm{.}46$

$$35\mathrm{.}67$

$$28\mathrm{.}50$