Determine the stock price for the John Bell Hood Company. Use formulas. Explain if this is a high risk or low risk stock.

EPS last seven years. 1.00, 1.25, 1.50, 1.75, 2.00, 2.25, 2.50

DPS last seven years. 0, 0, .10, .25, .50, .80, 1.25

Cost of Capital for the market is 11%. Inflation premium is 2%.

T-bill rate is 3.0 per cent.

Beta for this stock is 1.5.