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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

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 $4.83 a share indefinitely. It trades at a P/E of 11.8 times earnings and has a beta of 1.17. In addition, you plan on using a risk-free rate of 4.00% in the CAPM, along with a market return of 11%. You would like to hold the stock for 3 years, at the end of which time you think EPS will be $8.24 a share. Given that the stock currently trades at $75.85, 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?
This security's expected return(IRR) is enter your response here%

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