1. Risk and Valuation. Suppose that a company paid a dividend of $.075 this year and expects dividends to grow at 4% indefinitely.
   1. If the companys beta is 1.2, the market return is 8%, and the risk-free rate is 3%, what is the required rate of return for this company? (3 points)
   2. What is the most you should be willing to pay for a share of stock? (5 points)