3. (15 points) La-z-Boy Inc (LZB) currently trades for $40 per share. You expect the stock to pay a dividend of $0.9 per share in one year, and to trade for $43 per share immediately after the $0.9 dividend is paid. The beta for LZB stock is 1.6. The risk-free rate is 2% and the expected return on the market portfolio is 8%. a. ( points) Suppose you buy the stock at the current market price (840) and you sell it in one year, immediately after receiving the dividend. What is your expected dividend yield, your expected capital gain rate and your expected holding period return? b. (3 points) What is LZB's alpha? c. (3 points) What is LZB's intrinsic value per share? d. (3 points) Does LZB lie on, above or below the Security Market Line? (2 sentences at most)