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Roku IPOd in September 2017 with a first-day-of-trading closing price of $26.54 and it is currently trading at $112.46. Using our DDM model, we value

Roku IPOd in September 2017 with a first-day-of-trading closing price of $26.54 and it is currently trading at $112.46. Using our DDM model, we value Roku at $21.54 per share, its beta is 2.13, the equity premium is 5% and the risk-free rate is 0.66%. If you expect Rokus stock price to converge to the firms expected value in one year, what is the 1-year expected return (annualized, rounded to the nearest 0.01%)

a. -66.17% b. -73.73% c. -78.68% d. 469.05% e. None of the above

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