QUESTION 14 "Cache Creek Manufacturing Company is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to grow at the rate of 5% per year. The risk-free rate of return is 2.5%, and the expected return on the market portfolio is 12%. The stock is trading in the market today at $30. Using the constant-growth DDM and the CAPM, the beta of the stock is Hint: use the constant growth DDM to determine the market capitalization rate of the stock