Stock XYZ: earning at time 0 E_0 = $2 50, b = 40%, ROE = 15%, risk-free rate is 3%, expected return on market portfolio is 9%, the beta of stock XYZ is 1.5, and CAPM is valid here What's the required rate of return k based on CAPM? What's D_1 of stock XYZ? What's stock XYZ's P/E ratio? What's PVGO