This question consists from two sub-questions, (A) and (B). (A) Suppose you are interested in purchasing a share of the common stock for a company that recently paid dividends of $3 per shar. Assume your required return is 12% per year, find what is the maximum amount that you should be willing to pay for this share if: 1) There is no growth in the dividend in the coming years. 2) In the future, the dividend is expected to grow at a rate of 5% per year. 3) Compare between the results of 1 and 2, which one will be more expensive share and why? (B) As you are a security analyst preparing a report for firm's expectation regarding two stocks for the year to come. Your report is to include the expected returns for these stocks. You have been informed that the firm expects the S&P 500 to earn a return of 11% in the year ahead and that the risk-free rate is 5%. According to Morningstar, the betas for stocks XX and YY are 0.5 and 1.5 respectively. Required Find the expected returns for X and Y using CAPM Moodle