The stock of the Belta Corporation has a beta of 0.95. The stock recently paid an annual dividend of $0.5, and dividends are expected to grow at a rate of 3% indefinitely. The equity premium has averaged 5.5% in recent years, and it is expected to remain at this level for the foreseeable future. The relevant risk -free rate is 3.5%. What is the maximum price you should pay for a share of the Belta Corporation, according to CAPM?

$11.46

$5.72

$5.90

$9.00