Data			Part 1. Use the Constant Growth Rate formula
Current Stock Price	$136.56
Annual Dividends	$3.60		r= D0(1+g)/P+g=
Next 5 Years Growth	7.33%
Beta(3Y Monthly)	0.31
			Part 2: Use the CAPM
Market Rate	12%
Risk-free Rate	2%		r= rf+B(Rm-rf)=

Compute the expected return for your company 5 points You will need: Stock price Last year's dividend Projected growth rate Beta 1. Use the constant growth rate formula: 2. Use the CAPM (use the return on market of 12% and risk free rate of 2%): How risky is this company when using Beta as the risk measure? How do these two expected return estimates compare? Do they appear to be reasonable expected returns for shareholders? (show your work) Hints: From the Summary page of Yahoo Finance!, you can get the price, Beta, and last year's dividend