Q1. Magoo Contacts & Glasses, Inc. is expected to generate 300 million in free cash flow next year, and the FCF is expected to grow at a constant rate of 3% per year indefinitely. Magoo has no debt or preferred stock, and its WACC is 8%, If Magoo has 40 million of shares of stock outstanding what is the stock's value per share?

Then, please answer the following question: How can CAPM be used to estimate a stock's required rate of return?