You are an equity analyst and want to determine the fair price of Cisco Stock Cisco will earn $2.40 per share (E = $2.40) and its policy is to pay out half of its earnings in dividends. Earnings are expected to grow at 5% per year forever. Cisco's beta is 1.20, the risk-free rate is 3%, and the market risk premium is 10%. (2 decimal places for all parts) a. Assuming the stock is priced according to the Gordon growth model what is the price of Cisco stock? b. Suppose some good news came out and caused Investors to change their expectations so that Cisco was expected to grow 7% per year. What would the new price be? C. On the day the news came out, what would be the return