(Answer is not chosen. Disregard choosing $148.57)

Please provide steps.

Relevant formulas:

Gordon Growth Formula ( E[Dividend]/ r-g)

CAPM = rf + Beta (E[rm]-rf)

Suppose a firm paid a dividend of $9.6 this year. Expected dividend growth rate is 4%, risk-free rate is 2%, the market risk premium is 5%, and the beta of the firm is 1 . What is the value of this firm according to the Gordon Growth Model? You may assume the CAPM holds. $520.00$346.67$332.80$148.57