Question 10 Suppose a company pays $0.5 dividends that has risen at an annual compound growth rate of 4%, and the stock has a beta of 0.7. If U.S. Treasury bills of 6-month duration offered a risk-free return of 2% and you anticipate that the market will rise annually at a compound rate of 7.5% and dividend growth continues indefinitely, what would be the maximum price you should pay for the stock? $5.85 $28.11 $7.25 $17.25