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QUESTION 2 = Stock A has a systematic risk of Beta 1.5. The risk-free rate is 2% and the return on the market portfolio is

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QUESTION 2 = Stock A has a systematic risk of Beta 1.5. The risk-free rate is 2% and the return on the market portfolio is 12% The last dividend paid was $2.25. The growth rate of dividends in the first period is 3% and from the second period on is 2%. The price at time 1 is, a. $16.55 b. $15.45 c. $15.76 d. $19.31 e. $13.24

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