Suppose you are considering buying a stock. You expect the stock to pay a dividend of $3 one year from today, $3.20 two years from today, and then dividend will grow 3\% each year after that. Using the CAPM, you estimate your required refurn at 7% to compensate you for the risk of this stock's cash flows. What is the maximum price you are willing to pay for a share of the stock? LO3 $77.57$74.21$56.72$33.93 A share of preferred stock is currently trading for $80 and pays a dividend of $2 per year, with the next dividend due one year from today. What is your expected rate of return if you were to buy the stock today? 2.5%40%42.5%2.3%