A major new client of WM Management the SBP, has requested that WM present an investment seminar on common stock valuation to the represented cities, and the Vice-President of WM, who will make the actual presentation, have asked you to help them by answering the following questions. Because the Walt Disney Company operates in one of the represented cities, you are to work Disney into the presentation. (i) Assume a beta coefficient of 1.2, the risk-free rate is 7% and the required market rate is 12%. What is the required rate of return on the firms stock? (ii) Assume that Disney is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00, and whose dividend is expected to grow indefinitely at a 6 percent rate. What would Disneys expected dividend stream be over the next 3 years? What would Disneys current stock price be? (iii) What is the stocks expected value one year from now? (iv) What would the stock price be if Disneys dividends were expected to have zero growth?