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5. Stock T will retain all earnings for 3 years. The first dividend in year 4 will be $1.9a share. The growth rate is 6%.

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5. Stock T will retain all earnings for 3 years. The first dividend in year 4 will be $1.9a share. The growth rate is 6%. Beta is 1.4. The Sz P 500 yields 10%. Treasuries yield 5%. What is the required return? 6. What price should T sell for at end of year 3 ? 7. What price should T sell for today? 8. If T sells for $23.5, should you buy

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