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Firm As stock is currently trading at $84. Firm A will pay a dividend of...

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Finance

Firm As stock is currently trading at $84. Firm A will pay a dividend of $4.20 in the next year. Dividends will grow at 8% every year. The risk-free rate is 4%, and the expected return of the market portfolio is 14%. You use the CAPM model to calculate the expected return of the stock. Also, you use the constant-growth DDM to determine the intrinsic value of the stock. Using the constant-growth DDM and the CAPM, what is the beta of the stock?

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