2. We are purchasing a stock that just paid a dividend (DO) of $1.50. The stock is expected to increase its dividends by 4% per year forever. Beta of the stock is 1.3. The expected return on the market is 9% and the current risk-free rate of return is 3%. MUST SHOW ALL WORK! a. Using SML, what is the required rate of return on the stock? b. How much would the next dividend be? c. How much should we pay for this stock