2. As an analyst at Churnem & Bernem Securities, you are responsible for making recommendations to your firm's clients regarding common stocks. After gathering data on Denver Semiconductors, you have found that its dividend has been growing at a rate of 7% per year to the current (D.) $1.5 per share. You estimate that the stock has a beta of 3. The market return you expect is 5%, T-bill rate is 1%. a. Using CAPM, estimate the required rate of return for the stock b. If you expect that the dividend will grow at an 7% rate forever, what is the highest price at which you would recommend purchasing this stock to your clients? C. a Suppose now that you believe that the company's new product line will cause much higher growth in the near future. Your new estimate is for a 20% annual growth for the first 3-year period, followed by an 7% growth rate. Using these new assumptions, what is the value of the stock