2) If a company will pay a dividend of $3.50 a share next year, its discount rate is 14% and the growth rate in dividends is 4%, what should its value be according to the constant growth dividend discount model? 3) If the risk free rate is 5%, the expected return on the market is 10% (RM), and the company has a beta of 1.5, what is the expected return for the company (K) according to the capital asset pricing Model (CAPM)