a) XYZ, Inc. has a beta of 1.5. The risk-free rate of return is 5 percent and the market risk premium is 6 percent. Find the required rate of return on the stock (i.e., the cost of equity capital). b) XYZ, Inc. will pay a dividend of exist4.00 per share next year. The firm will increase the dividend payment by exist0.50 a share every year for the next 5 years (i.e., years 2 to 6) Thereafter, the dividends are expected to grow at 5 percent per year forever. What is XYZ's current stock value? Use the required rate of return on the stock from (a)