If the risk-free rate is currently 4.5% and the market rate of return is 10.5%, what would be the required rate of return on a stock with a beta of 1.1? Now suppose that the stock is selling for $32 per share and just recently paid a dividend of $1.80 and it has an expected growth rate of 6.2%. Is the price of this stock too high or too low? Explain. Also explain what would happen to the required return of this stock if inflationary expectations increase by 2%, or the rate of return on the market decreases to 10% or the beta of the stock decreases to 1.1. Analyze each of these changes independently.