The risk-free rate of return is 3 percent; the expected rate of return on the market is 8 percent. Stock X has a beta coefficlent of 1.1, an earnings and dividend-growth rate of 6 percent, and a current dividend of $2.00. If the stock is selling for $120 should you consider buying it? Value Hieti first you will need to calculate the required return of 5 tock x given its beta, and then apply the dividend growth model to determine its fav value