Estimates of a firm's returns revealed that of the firm was 1.3, and the historical average market return over the past 5 years has been 12.5%, and the current risk-free rate is 1.07%. What is the expected return of this stock based on the Capital Asset Pricing Model (CAPM). The firm just recently released a dividend for $0.39 per share, given an expected dividend growth rate of 7.90%, what is the price per share of the stock? a. $2.45 b. $4.94 c. $5.24 d. $-4.86