Week 8 Homework F370 (Financial Decision Making)) i A share of stock with a beta of 0.75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4%, and the market risk premium is 7%. 5.55 points References a. Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? What will investors do? b. At what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today? Complete this question by entering your answers in the tabs below. At what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today? Note: Do not round intermediate calculations. Round your answer to 2 decimal places