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General Electric Co. (GE) is expected to pay a $5.00 dividend at the end of this year. If you expect GE's dividend to grow by

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General Electric Co. (GE) is expected to pay a $5.00 dividend at the end of this year. If you expect GE's dividend to grow by 4% per year forever and GE's equity cost of capital to be 11%, then the value of a share of GE stock is closest to $87.50 $94.12 $80.00 $71.43 Your estimate of the market risk premium is 7%. The risk-free rate of return is 4%, and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return? 13.1% 10.4% 13.8% 11.7%

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