3 Given the information below, what is the value of beta for this stock? There will be two-step process needed to solve this. 1) Solve for the rate of return to the stock using the constant dividend growth model. 2) Plug that answer into the Security Market Line (SML) formula to solve for beta. \begin{tabular}{|r|c|l|} \hline P0= & $75 & Use this with the constant dividend growth model. \\ \hline D1= & $2.00 & Use this with the constant dividend growth model. \\ \hline g= & 3.0% & Use this with the constant dividend growth model. \\ \hline & & \\ \hline rrf= & 2% & Use this with the SML formual. \\ \hline rm= & 10% & Use this with the SML formual. Note that this is the market return. \\ \hline \end{tabular} Answer: \begin{tabular}{|r|r|} \hline a. & 0.38 \\ \hline b. & 0.46 \\ \hline c. & 0.53 \\ \hline \end{tabular} \begin{tabular}{l|l} ANS: & \\ Step 1 & Find rs: \\ & rs=D1/P0+g \end{tabular} Step2 Use the CAPM to find beta: rs=rRF+(rMrRF)b Please contact me with questions on solving for 'beta