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I need help with value of the stock please. Let's assume that you're thinking about buying stock in West Coast Electronics. So far in your

image text in transcribedI need help with value of the stock please.

Let's assume that you're thinking about buying stock in West Coast Electronics. So far in your analysis, you've uncovered the following information: The stock pays annual dividends of $4.96 a share indefinitely. It trades at a P/E of 8.8 times earnings and has a beta of 1.12. In addition, you plan on using a risk-free rate of 4.00% in the CAPM, along with a market return of 9%. You would like to hold the stock for 3 years, at the end of which time you think EPS will be $7.15 a share. Given that the stock currently trades at $50.11, use the IRR approach to find this security's expected return. Now use the dividend valuation model (with constant dividends) to put a price on this stock. Does this look like a good investment to you? Explain. This security's expected return (IRR) is 17.11 %. (Round to two decimal places.) The value of the stock is $ 99.20 (Round to the nearest cent.)

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