Question: 3. A stock will pay out a $3 dividend next year. The stock is currently trading for $60. If dividends are expected to grow at

3. A stock will pay out a $3 dividend next year.

3. A stock will pay out a $3 dividend next year. The stock is currently trading for $60. If dividends are expected to grow at a 4% annual interest rate, what is the cost of equity? 4. The expected market return for the next year is 10.3% and the risk-free rate is expected to be 3.1%. If a stock has a beta of 0.85, what is the stocks required return

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