Stock X paid a dividend of $3.40 per share for the year just ended. Analysts expect the company's pershare dividends to grow at a constant rate of 3.25% for the foreseeable future. The current price of Stock X is $80.00, and you have estimated the stock's beta to be 0.80 . The estimated risk-free rate and the , market risk premium are 4% and 6%, respectively. According to the CAPM, is Stock X priced correctly? For the stock in the previous problem, find the expected dividend, the expected capital gains yield, and the present value of growth options (PVGO). Is the PVGO positive or negative? What causes this