Domino's common stock will pay an annual dividend of $$1\mathrm{.}65$ exactly one year from today.

Assuming a dividend growth rate of $3\mathrm{.}25\%,$ you calculate the intrinsic value of the stock to be

$$38\mathrm{.}82.$ Use this information for the next two questions.

What long$-$run return does this price imply you require?

a$.4\mathrm{.}25\%$

b$.5\mathrm{.}75\%$

c$.7\mathrm{.}50\%$

d$.8\mathrm{.}25\%$

If the market risk premium is $8\%$ and a T$-$Bill is selling today for $$975\mathrm{.}61,$ what must be

the beta of Domino's?

a$.,0\mathrm{.}22$

b$.0\mathrm{.}63$

c$.1\mathrm{.}39$

d$.1\mathrm{.}60$