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5) Cleese Payment Company is expected to pay $2.5 dividend per share at the end of this year. The companys beta is 2. Three months

5) Cleese Payment Company is expected to pay $2.5 dividend per share at the end of this year. The companys beta is 2. Three months US Treasury bill yield is 3 %, and the return on the S&P 500 index is 12 %. It is expected to grow at 6% per year forever. How much should be the value of the shares? If the shares are selling for $40 in the market, would you buy it?

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