ernon recomme us you a stock because arter analysis ne determined that the firm's dividends will see a continuous annual growth of 4%. The last dividend the firm paid was 0.80/share. The beta (B) of the stock is 1.15, the risk-free rate is 3%, and the expected return on the market is 12%. Using the Capital Asset Pricing Model (CAPM) and Gordon's Growth model, what price would you be willing to pay? Briefly comment on the assumptions of Gordon's Growth model. [10 MARKS]