Question: Suppose the expected return for the S&P 500 is 12% and the current T-Bill rate is 2%. You also expect a stock that has a

Suppose the expected return for the S&P 500 is 12% and the current T-Bill rate is 2%. You also expect a stock that has a beta of 1.3 to pay a dividend of $3.09 exactly one year from now, and you expect its price to be $50.00 immediately after the dividend is paid. If the stock market is efficient and the CAPM holds, what is a fair price for the stock today? Round your answer to the nearest penny.

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