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Problem : stocks of MarconContact Corporation sell currently at $40. The beta coefficient of the stock is B-1.1. Further assume that the risk-free rate is 2.5% and the expected rate of retum on an average stock in the market is 9%. MarconContact Corporation just paid $1.47 dividends and is expected to grow at a constant rate of 4%. a) What is the stock's required return assuming that the CAPM holds? b) Calculate the expected return using the Dividend Discount Model (DDM). c) Comparing the results from a) and b), is the stock in equilibrium assuming that CAPM holds? Why or why not? d) Calculate the equilibrium price for the stock