Need to solve this from Understanding Financial Healthcare Management, Gapenski

NAME PROBLEM SET 3 Chapter 7 Equity Financing Assigned Problem 4 Assume the risk-free rate is 6 percent and the market risk premium is 6 percent. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (DO) was S2 pershare. a. What would PCN's stock value be if the dividend was expected to grow at a constant -5 percent? 0%? 5%? Hint: First, use the SML of the CAPM to show that the stock's required rate of return is 15%. b. What would be the stock value if the growth rate is 10 percent, but PCN's beta falls to 1.0? 0.5