of: HOQ does not pay a dividend. $ 101.00 per share. Michael Jordan, an investment analyst who has in-depth knowledge of the luxury consumer products industry estimates that HOQ's Stock Price next year will be $125 per share. a) Estimate HOQ's Equity Return according to CAPM if the equity market risk premium is 6.2% and the risk-free rate is: b) What does Michael expect the Equity Return to be (using his research)? c) Does Michael think HOQ is currently fairly-valued, undervalued or overvalued? d) What should he recommend his clients do regarding HOQ stock now? ANSWERS: a) Equity Return b) Equity Return - per Michael c) Valuation Under/Over/Fair d) Recommendation Use as much space as you want to answer these questions 0.70%