Suppose you are an investment adviser with a brokerage firm and you are considering whether or not to recommend Goldix stock to your clients by performing fundamental analysis. You plan to use the Discounted Cash Flow stock valuation method. To determine an appropriate equity discount rate for Goldix, you considered using the Capital Asset Pricing Model (CAPM), which represents investors' required rate of return on what could be earned on risk-free investments plus a risk premium.

The current long-term 10-year government bond yield is 3.68 percent. The market risk premium was estimated to be 5.05 percent and Goldix's risk premium was estimated to be 3.33 percent. You plan to apply the Gordon growth model and the valuation assumption is that Goldix's stock will reach a maturity growth rate of 5 percent from the year 2022 onwards. The cash flow per share for the years 2020, 2021, and 2022 are $1.83, $1.98, and $2.08 respectively.

What is the beta value of Goldix's stock?

Calculate the required rate of return of Goldix's stock using the Capital Asset Pricing Model (CAPM).

Assuming that Goldix will reach a maturity growth rate of 5 percent from the year 2022 onwards, calculate the value of Goldix's stock at the end of 2021.

Based on your calculation in question?, should Goldix's stock be purchased if the market price is $96? Why?