4 Suppose you have the following information about a stock - Expected Return Do = Po = $4.00 $50 3.0% g= Required Return 2% 8% 1.2 b = To calculate the expected return on a stock, use the Constant Dividend Growth model in your analysis. To calculate the required return on a stock using CAPM. a) Is this stock in equilibrium? Explain your reasoning. b) If it is not in equilibrium, determine the equilibrium price. Ans. a. Yes or No Explain b. Equilibrium Price