RRF = 5.2500%

Rm = 13.0000% Beta = 2.15

CALCULATE REQUIRED RATE OF RETURN NEXT dividend = $3.55

GROWTH rate = 8.0000% MARKET PRICE = $22.75

CALCULATE THE EXPECTED RATE OF RETURN.

CALCULATE EQUILIBRIUM STOCK PRICE $

CALCULATE the REQUIRED RATE OF RETURN _________________________

CALCULATE the EXPECTED RATE OF RETURN _________________________

IS THE STOCK PRICE OVER or UNDER VALUED? _________________________

CALCULATE THE EQUILIBRIUM STOCK PRICE$ _______________________