Your Company: General Motors

From Yahoo Finance!'s Analyst Estimate page, you can find the growth rate Compute the expected return for your company. You will need: Stock price Last year's dividend Projected growth rate Beta .Use the constant growth rate formula: r = D_0(1+g)/p + g Use the CAPM (use the return on market of 12% and risk free rate of 2%): r = r_f + beta (R_M - r_f) How risky is this company when using Beta as the risk measure? How do these two expected return estimates compare? Do they appear to be reasonable expected returns for shareholders? (show your work)