5. You are contemplating an investment in the stock of Idol Corporation. You know that the price of Idol stock is estimated tising the constant-growth dividend discount model and its required return (cost of equity) is estimated using the CAPM. Yesterday, Idol paid a dividend of $3.00 per sture. The dividend is expected to grow at an annual rate of 4% throughout the foreseeable future. Idol's trailing P/E ratio iu 18 and its debt/crity ratio is 1.25. The yield to maturity (cost of debt) for the bonds of Idol Corporation is 8% (which represents a 500 basis point spread over the risk-free rate). You also know that the expected market return (S&P 500) is 11% with a standard deviation of 14%. The beta for Idol in 1.04, the correlation between Idol and the risk-free rate in 49, and Idol's debt in rated BBB Calculate the price per share of the Idol Corporation stock 1