You are currently evaluating the common stock of XYZ Corporation. You have estimated that XYZs expected annual dividend will be $3.40 per share a year from now. This dividend is expected to grow at a constant annual rate of 7% for ever. Currently XYZs common stock is selling for $42.50 You have estimated XYZs beta to be 1.5 The risk-free rate of return has been estimated to be 4% and the risk- premium on the market portfolio is 8% a. What is the required return on XYZs common stock? b. What is the expected dividend yield on XYZs common stock, given its current price? c. What is the expected capital gains yield on this stock investment? d. What is the total expected yield on this stock investment? e. What is the value of XYZs common stock now? f. What is your investment decision based on your answers in a and d above? Why? g. What is your investment decision based on the stocks current price and your answer in part e above? Why?