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3. Suppose the CAPM explains expected returns. A stock's beta is 1.4, the risk-free rate...

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3. Suppose the CAPM explains expected returns. A stock's beta is 1.4, the risk-free rate is 1.1% and the market risk premium is 10.0%. You expect the stock's EPS to be $12.91 every year. Since it doesn't have any opportunity to grow, the firm will always pay out all its earnings as dividends, with the first dividend occurring one year from today. Under efficient markets, what should the stock price be today? Round your answer to the nearest penny

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