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6. (10 pts) Using the table below, what is the maximum that an investor should be willing to pay for the share of common stock

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6. (10 pts) Using the table below, what is the maximum that an investor should be willing to pay for the share of common stock today? Table below to be used with problem #6: Variable Value Explanation Dividend 10%, 10% for next 2 years (annual growth 3% estimate) and 3% per year estimate indefinitely thereafter. Current $1.00 Paid to shareholders on record as dividend of 4/28/21 (DIV.) Beta 2.0 Current estimate coefficient Expected 12.0% Expected (annual) return on the market S&P 500 Index return RFR 5.0% Expected 10-year Treasury bond yield

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