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Shares in Seafun Safari are currently trading today, January 1, for $4.85 per share. Seafun's next dividend (on December 31st) is expected to be $1.75.

Shares in Seafun Safari are currently trading today, January 1, for $4.85 per share. Seafun's next dividend (on December 31st) is expected to be $1.75.

You plan to sell your shares after the dividend next year and expect to receive $3.63when you sell them. Seafun's beta is 1.22,

the expected return on the market is 6.80%, and T-Bills are expected to earn 1.90%. After calculating the implied rate of return and equilibrium rate of return on your investment, is Seafun a good investment right now?

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