Can you show the work/formulas

b 7 Assume the risk-free rate is 6 percent and the market risk premium is 6 percent. The stock of 8 Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (DO) was $2 per share. 9 10 a. What would PCN's stock value be if the dividend was expected to grow at a constant -5 percent? 0% 5%? 11 Hint: First, use the SML of the CAPM to show that the stock's required rate of return is 15%. 12 13 b. What would be the stock value if the growth rate is 10 percent, but PCN's beta falls to 1.0?0.5? 14 15 ANSWER 16 17 18 19