Assume a major investment service has just given Big Lake Realty its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find: This year, Big Lake paid its stockholders an annual dividend of $3.83 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 9% a year for the next five years and then to level out at 5% a year. So far, you've learned that the stock has a beta of 1.24, the risk-free rate of return is 4.6%, and the expected return on the market is 11.8%. Using the CAPM to find the required rate of return, put a value on this stock. Using the CAPM, the required rate of return on the investment is %. (Round to two decimal places.) Energy Resources generated an EPS of $1.43 over the last 12 months. The company's earnings are expected to grow by 22.5% next year, and because there will be no significant change in the number of shares outstanding, EPS should grow at about the same rate. You feel the stock should trade at a P/E of around 28 times earnings. Use the P/E approach to set a value on this stock. Using the P/E approach, the value on this stock is $ (Round to the nearest cent.)