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Lets assume that you're thinking about buying stock in West Coast Electronics. So far in...

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Finance

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Lets assume that you're thinking about buying stock in West Coast Electronics. So far in your analysis, you've uncovered the following information: The stock pays annual dividends of $5.13 a share indefinitely. It trades at a P/E of 11.8 times earnings and has a beta of 1.17. In addition, you plan on using a risk-free rate of 5.00% n he CAPM along with a market return of 9%. You would like to hold he stock for 3 years, atthe end of hich me you hink EPS will be $10.65 a share Given that he stock currently trades at $79.41. use he RR approach to find this security's expected return. Now use he d dend valuation mode with cons dividends) to put a price on this stock. Does this look like a good investment to you? Explain stock to put a pridong with a markt uExpinars, a This security's expected return (IRR) is | %. (Round to two decimal places.)

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