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Given a stock and the follwing : P 0 6 2 , E ( ri ) 0 . 0 7 9 5 , E (

Given a stock and the follwing : P062, E(ri)0.0795, E(rM)0.06, rf 0.045. The stock pays a constant dividend into perpetuity, and it is valued based on this assumption (hint). News relating to risk is released meaning that i increased by 110%. What shoould the new E(ri) be for the security (i.e. the disocunt rate) assuming the CAPM?

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