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Normal Paragraph 1 No Spac... Heading 1 Bbcc) Heading 2 Title Find Replace Select Styles Dictat Editing Voice C. Problem -2-5 (08 marks Company C's

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Normal Paragraph 1 No Spac... Heading 1 Bbcc) Heading 2 Title Find Replace Select Styles Dictat Editing Voice C. Problem -2-5 (08 marks Company C's stock has beta 1.2, the risk-free rate is 6%, and the market return is 11%, what will be the stock's required rate of return using the Capital Asset Pricing Model (CAPM)? The Company C's has just paid a dividend per share of $2. Find the price of the company C's stock when the dividend growth rates are: a. 0% b. 5% 3| Page 3

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