Caroline is interested in purchasing AFM Industries stock, trading at $94 with that price expected to grow 12% over a year. A $7 dividend is expected at the end of that year. They regress the excess returns of the stock on the excess return of the market and get a slope of 1.2. T-bills yield 2%, and the expected return of the S&P 500 is 18%. Compute (a.) the expected and (b.) required return of one share for a one year holding period. (c.) Should they buy these shares?