Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 16%. Today, a share of stock for company Y was selling for $79. At the end of the year, this stock will pay out a dividend of $12 per share. Its beta is 0.95. Assume these are ordinary shares.

A. What is the expected rate of return for company Y?
	R	=	Rf	+B	x (Rm	- Rf)
	R	=
	R	=
	R	=
B. At the end of the year, what do you anticipate the stock price will be?
(Hint: Solve for P1)
Formula:
	Ve =	D1	+	P1
		(1+Re)		(1+Re)
			+	P1
		=	P1
C. Is it worth investing in this stock? Why or why not? Support your conclusions.