Question S: We are trying to decide what to do with a stock. This year the company paid a dividend of $5. And its current price (aka after the dividend has been paid) is $50. Its Beta is 1.4. the risk free rate is 2% and the excess market return is 5%. a. What is the market's expectation of this stock's return? Using CAPM the market expects it to return Your answer goes inside this box: 99 b. What must its price be next year if we want an HPR of 15% (Assume the company announces no divided will be paid next year) Your answer goes inside this box: c. Next year, you achieve your 15% HPR on this security, describe the market's valuation for this stock. Is it over valued or under-valued? Your answer goes inside this box: d. What is the implied plowback ratio (using this year's price and dividend) assuming the stock is under sero dividend growth path? Your answer goes inside this box