Assume a major investment service has just given Oasis Electronics 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, Oasis paid its stockholders an annual dividend of

$3.63

a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of

13

%

a year for the next 4 years and then to level out at

9

%

a year. So far, you've learned that the stock has a beta of

1.66

,

the risk-free rate of return is

6

%,

and the expected return on the market is

12

%.

using the CAPM, the required rate of return on investment is %

the value of company's stock is $